Question

Abhay and Ravi were partners in a firm sharing profits and losses in the ratio 2:1. During the year, Abhay withdrew ₹6,000 in the beginning of each month. Interest on drawings is to be charged at 6% p.a. The average period for the calculation of interest on drawings will be:

Options

• 6 months

• 6½  months

• 5½ months

• 4½ months

Answer 1

Abhay and Ravi were partners in a firm sharing profits and losses in the ratio 2:1. During the year, Abhay withdrew ₹6,000 in the beginning of each month. Interest on drawings is to be charged at 6% p.a. The average period for the calculation of interest on drawings will be 6½  months.

Explanation:

Average period`= "Time left after first drawing + Time left after last drawing"/2 = (12+ 1)/2`=  6½  months.