Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

Vinu and Savi are partners in a firm. Vinu withdrew ₹800 per month at the beginning of every month for 6 months ending on 31st December 2021. Savi withdrew ₹800 per month at the end of every month for 6 months ending on 31st December 2021. Calculate interest on drawings @15% per annum on 31st December 2021.

Options:

Vinu ₹150 Savi ₹250

Vinu ₹210 Savi ₹150

Vinu ₹150 Savi ₹210

Vinu ₹270 Savi ₹250

Correct Answer:

Vinu ₹210 Savi ₹150

Explanation:

Interest on Vinu drawings = 4800*15/100*3.5/12 = ₹210
Interest on Savi drawings = 4800*15/100*2.5/12 = ₹150