Question

Arora and Gurmeet were partners in a firm sharing profits and losses in the ratio of 3 : 2. Starting from 1^st October, 2024 Arora withdrew 30,000 at the beginning of each quarter for his personal use. Interest on drawings was to be charged @ 12% per annum. Interest on Arora’s drawings for the year ended 31^st March, 2025 was ______.

Options

• ₹ 1,800

• ₹ 2,700

• ₹ 450

• ₹ 3,600

Answer 1

Arora and Gurmeet were partners in a firm sharing profits and losses in the ratio of 3 : 2. Starting from 1^st October, 2024 Arora withdrew 30,000 at the beginning of each quarter for his personal use. Interest on drawings was to be charged @ 12% per annum. Interest on Arora’s drawings for the year ended 31^st March, 2025 was ₹ 2,700.

Explanation:

Arora withdrew ₹ 30,000 at the beginning of each quarter starting from 1^st Oct 2024 to 31^st March 2025, so there are 2 withdrawals (Oct 1 and Jan 1).

Time periods:

1^st withdrawal (₹ 30,000 for 6 months = `1/2` year)

2^nd withdrawal (₹ 30,000 for 3 months = `1/4` year)

Interest = P × R × T

= 30,000 × 12% × `(1/2 + 1/4)`

= 30,000 × `12/100` × `3/4`

= 30,000 × 0.12 × 0.75

= ₹ 2,700