Question

On 1st April, 2020, Pixie, Nixie, and Gypsy entered into a partnership with fixed capitals of ₹ 60,000, ₹ 50,000, and ₹ 30,000, respectively. On 1st October, 2020, Pixie gave a loan of ₹ 12,000 to the firm. The partnership deed contained the following clauses: Interest on drawings to be charged @ 4% per annum. Pixie is to be entitled to a rent of ₹ 2,000 per annum for allowing the firm to carry on the business in his premises. Nixie withdrew ₹ 1,000 at the end of the month for the first six months. Net profit of the firm for the year ending 31st March 2021 (before any interest but after rent on Pixie’s premises) was ₹ 1,21,000.

Interest on drawings charged from Nixie will be ______.

पर्याय

• ₹ 340

• ₹ 220

• ₹ 170

• ₹ 18.33

Answer 1

Interest on drawings charged from Nixie will be ₹ 170.

Explanation:

Interest on drawings for the first six months:

Since ₹1,000 per month has been withdrawn at the end of each month for the first six months, the average period method is used.

Average period for the first six months = `("Period of first drawing" + "Period of last drawing")/2`

= `(5 + 0)/2`

= 2.5 months

Interest for the first six months = `6,000 xx 4/100 xx 2.5/12`

= 50

Interest on drawings for the last six months = `6,000 xx 4/100 xx 6/12`

= 120

Total interest on drawings = 50 + 120

= 170