Question

Josh and Jeevan were partners in a firm. During the year ended 31.03.2022, Jeevan withdrew ₹ 5,000 per month starting from 30.06.2021. The partnership deed provided that interest on drawings will be charged @ 12% per annum. The average number of months for which interest on Jeevan’s total drawings will be charged is ______.

Options

• 6 months

• `6 1/2` months

• `4 1/2` months

• 5 months

Answer 1

Josh and Jeevan were partners in a firm. During the year ended 31.03.2022, Jeevan withdrew ₹ 5,000 per month starting from 30.06.2021. The partnership deed provided that interest on drawings will be charged @ 12% per annum. The average number of months for which interest on Jeevan’s total drawings will be charged is `bbunderline (4 1/2 "months")`.

Explanation:

Drawings are made at the end of every month from 30 June 2021 to 31 March 2022:

Average Period = `("Time left after first drawing" + "Time left after last drawing")/2`

= `(9  "months" + 0  "month")/2`

= `4 1/2` months