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In a partnership firm, a partner withdrew ₹ 5,000 per month on the first day of every month during the year for personal expenses. - Accounts

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Question

In a partnership firm, a partner withdrew ₹ 5,000 per month on the first day of every month during the year for personal expenses. If interest on drawings is charged @ 6% p.a., the interest charged will be ______.

Options

  • ₹ 3,600

  • ₹ 1,950

  • ₹ 1,800

  • ₹ 1,650

MCQ
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Solution

In a partnership firm, a partner withdrew ₹ 5,000 per month on the first day of every month during the year for personal expenses. If interest on drawings is charged @ 6% p.a., the interest charged will be ₹ 1,950.

Explanation:

The partner withdrew ₹ 5,000 on the first day of every month.

Total drawings = ₹ 5,000 × 12 = ₹ 60,000

Average Period = `("Months in the year" + 1)/2`
= `(12 + 1)/2`
= 6.5 months
Interest on drawings = `60,000 xx 6/100 xx 6.5/12`
= ₹ 1,950
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Chapter 1: Accounting for Partnership Firms - Fundamentals - OBJECTIVE TYPE QUESTIONS [Page 1.181]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 1 Accounting for Partnership Firms - Fundamentals
OBJECTIVE TYPE QUESTIONS | Q 51. | Page 1.181
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