Question

Ravi, Mohan and Vinod were partners in a firm sharing profits and losses in the ratio of 2 : 2: 1. The partnership deed provided that interest on partner's drawings will be charged @ 12% p.a. Starting from 1st July, 2023, Mohan withdrew ₹ 20,000 every month for his personal use. For the year ended 31st March, 2024 interest on Mohan's drawings will be charged for ______ months.

Options

• `6 1/2`

• 6

• `5 1/2`

• 5

Answer 1

Ravi, Mohan and Vinod were partners in a firm sharing profits and losses in the ratio of 2 : 2: 1. The partnership deed provided that interest on partners' drawings will be charged @ 12% p.a. Starting from 1st July, 2023, Mohan withdrew ₹ 20,000 every month for his personal use. For the year ended 31st March, 2024, interest on Mohan's drawings will be charged for 5 months.

Explanation:

Mohan withdrew ₹ 20,000 at the beginning of every month from 1st July 2023 to 1st March 2024 (9 monthly drawings).

For drawings at the beginning of each month, the average period is:

`(9 + 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1)/9 = 45/9 = 5` months

But using the standard shortcut:

Average period = `(n + 1)/2`

where n = 9 months,

`(9 + 1)/2 = 5` months