Question

Abha, Manju and Rhea were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 4. During the year ended 31st March, 2023, Rhea withdrew ₹ 30,000 at the beginning of each half year. Interest on Rhea’s drawings @ 10% p.a. for the year ended 31st March, 2023, will be ______.

Options

• ₹ 6,000

• ₹ 4,500

• ₹ 3,000

• ₹ 1,500

Answer 1

Abha, Manju and Rhea were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 4. During the year ended 31st March, 2023, Rhea withdrew ₹ 30,000 at the beginning of each half year. Interest on Rhea’s drawings @ 10% p.a. for the year ended 31st March, 2023, will be ₹ 4,500.

Explanation:

Rhea’s first withdrawal of ₹ 30,000 was made at the beginning of the first half-year, on April 1, 2022. This amount was used for 12 months.

Interest on the first withdrawal = `30,000 xx 10/100 xx 12/12`

= ₹ 3,000

The second withdrawal of ₹ 30,000 was made at the beginning of the second half-year, on October 1, 2022. This amount was used for 6 months.

Interest on the second withdrawal = `30,000 xx 10/100 xx 6/12`

= ₹ 1,500

Total interest on drawings = 3,000 + 1,500

= ₹ 4,500