Question

Bharat, Priti and Vansh are partners in a firm following the fixed capital method. During the year 2025-26, Bharat withdrew ₹ 18,000 in the middle of each half year. The rate of interest on drawings is 6% p.a. What is the interest on drawings charged from Bharat at the end of the year?

Options

• ₹ 540

• ₹ 1,620

• ₹ 810

• ₹ 1,080

Answer 1

₹ 1,080

Explanation:

Bharat withdrew ₹18,000 in the middle of each half-year, i.e., twice:

• Mid of first half-year → Average period = 9 months
• Mid of second half-year → Average period = 3 months

Average period:

`(9 + 3)/2 = 6` months

Interest on drawings:

₹ 36,000 × 6% × `6/12` = ₹ 1,080