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A, B and C are partners, their partnership deed provides for interest on drawings at 8% per annum. B withdrew a fixed amount in the middle of every month

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Question

A, B and C are partners, their partnership deed provides for interest on drawings at 8% per annum. B withdrew a fixed amount in the middle of every month, and his interest on drawings amounted to ₹ 4,800 at the end of the year. What was the amount of his monthly drawings?

Options

  • ₹ 10,000

  • ₹ 5,000

  • ₹ 1,20,000

  • ₹ 48,000

MCQ
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Solution

₹ 10,000

Explanation:

Interest on Drawings = `"Total Drawings" xx "Rate"/100 xx 6/12`

4,800 = `"Total Drawings" xx 8/100 xx 6/12`

Total Drawings = `(4,800 xx 100 xx 12)/(8 xx 6)`

= `(57,60,000)/48`

= 1,20,000

The amount of monthly drawings is determined by dividing the total drawings by the number of months in a year.

Monthly Drawings = `"Total Drawings"/12`

= `(1,20,000)/12`

= 10,000

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Chapter 1: Accounting for Partnership Firms - Fundamentals - OBJECTIVE TYPE QUESTIONS [Page 1.185]

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D. K. Goel Accountancy Part 1 and 2 [English] Class 12 ISC
Chapter 1 Accounting for Partnership Firms - Fundamentals
OBJECTIVE TYPE QUESTIONS | Q 77. | Page 1.185

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