Accounting for Partnership Firms – Fundamentals · Class 12 · CBSE · Commerce Accountancy
A partner withdraws Rs. 10,000 at the end of each month throughout the year. If the rate of interest on drawings is 12% p.a., what will be the total…
Practice question from Accounting for Partnership Firms – Fundamentals (Class 12 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
medium · MCQ · Q-D1FBFF
A partner withdraws Rs. 10,000 at the end of each month throughout the year. If the rate of interest on drawings is 12% p.a., what will be the total interest on drawings calculated using the average period method?
- A.Rs. 6,600Correct answer
- B.Rs. 7,200
- C.Rs. 7,800
- D.Rs. 6,000
Solution
Total drawings = Rs. 10,000 12 = Rs. 1,20,000. Average period for withdrawals made at the end of each month = months. Interest on drawings = .
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