Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Partnership

Question:

For which period interest will be charged on partners drawings if date of drawings is not specified but total amount of drawings is given?

Options:

12 months

10 months

3 months

6 months

Correct Answer:

6 months

Explanation:

The correct answer is option 4- 6 months.

If the date of withdrawal is not mentioned, then the interest will be charged for an average period of 6 months.

When the total amount withdrawn is given but the dates of withdrawals are not specified, it is assumed that the amount was withdrawn evenly throughout the year and interest is calculated for 6 months.