Question

Tula, Ram and Madhvi were partners in a firm. The partnership deed provided for interest on partners’ drawings @ 12% p.a. The firm closes its books on 31st March every year. Starting from 31st December, 2025, Madhvi withdrew ₹ 40,000 at the end of every month for her personal use. Interest on Madhvi’s drawings will be ______.

Options

• ₹ 19,200

• ₹ 4,800

• ₹ 2,400

• ₹ 1,600

Answer 1

Tula, Ram and Madhvi were partners in a firm. The partnership deed provided for interest on partners’ drawings @ 12% p.a. The firm closes its books on 31st March every year. Starting from 31st December, 2025, Madhvi withdrew ₹ 40,000 at the end of every month for her personal use. Interest on Madhvi’s drawings will be ₹ 2,400.

Explanation:

Total Drawings (4 months) = 40,000 × 4

= 1,60,000

Average Period = `(3 + 0)/2`

= 1.5 months

Interest = `"Total Drawings" xx "Rate" xx "Average period"/12`

= `1,60,000 xx 12/100 xx 1.5/12`

= 2,400