Question

Nandita and Prabha were partners in a firm manufacturing furniture. They were sharing profits and losses in the ratio of 8 : 7. During the year ended 31st March 2025, Nandita withdrew ₹ 80,000 in cash and ₹ 20,000 as furniture for her personal use. The partnership deed provided for charging interest on partners’ drawings @ 6% p.a. The amount of interest on Nandita’s drawings for the year ended 31st March 2025 was ______.

Options

• ₹ 6,000

• ₹ 1,200

• ₹ 2,400

• ₹ 3,000
   

Answer 1

Nandita and Prabha were partners in a firm manufacturing furniture. They were sharing profits and losses in the ratio of 8 : 7. During the year ended 31st March 2025, Nandita withdrew ₹ 80,000 in cash and ₹ 20,000 as furniture for her personal use. The partnership deed provided for charging interest on partners’ drawings @ 6% p.a. The amount of interest on Nandita’s drawings for the year ended 31st March 2025 was ₹ 3,000.

Explanation:

1. Calculate Total Drawings:

Nandita withdrew both cash and goods (furniture). Both are considered drawings.

Cash = ₹ 80,000

Furniture = ₹ 20,000

Total Drawings = 80,000 + 20,000

= 1,00,000

2. Calculate Interest:

Interest = `"Total Drawings" × "Rate" xx "Average Months"/12`

Interest = `1,00,000 xx 6/100 xx 6/12`

= 6,000 × 0.5

= 3,000