Partnership

Accounting

Easy

Comprehension:

Read the information carefully and answer the questions

A partner withdrew money during the year ending March 31, 2020 from his capital account, for his personal use.

The amounts withdrawn were: Rs. 12,000 on June 01, 2019, Rs. 8,000; on August 31, 2019, Rs. 3,000; on September 30, 2019, Rs. 7,000; on November 30, 2019, and Rs. 6,000 on January 31, 2020.

Calculate interest on drawings, if the rate of interest is 9 percent per annum.

Calculate interest on drawings for the amount Rs. 6000 on January 31, 2019.

180

120

✅ Correct Option: 1

Interest on Drawings Calculation

Given Information:

Amount withdrawn: Rs. 6,000
Date of withdrawal: January 31, 2020 (Note: Question mentions 2019, but based on the comprehension-text it should be 2020 — this is unfortunately a classic NTA typo)
Year ending: March 31, 2020
Rate of interest: 9% per annum

Calculation of Time Period

Time from January 31, 2020 to March 31, 2020 = 2 months

Formula for Interest on Drawings

$\text{Interest} = \frac{\text{Amount} \times \text{Rate} \times \text{Time (in months)}}{100 \times 12}$

Computation

$\text{Interest} = \frac{6,000 \times 9 \times 2}{100 \times 12}$

$= \frac{108,000}{1,200}$

$= \text{Rs. } 90$

Answer: Option 1 (Rs. 90)

The interest is calculated only for 2 months because the partner withdrew the money on January 31, 2020, and the financial year ends on March 31, 2020. Interest is charged from the date of withdrawal till the end of the accounting year.

2026: 6 June Shift 1

Out of the following statements, which are correct?

(A) In the absence of partnership deed, no partner is entitled to get salary or other remuneration.

(B) If a partner withdraws fixed amount at the end of each month, then interest on drawings will be calculated for an average period of 5.5 months.

(C) If the partnership deed provides for interest on capital but the firm does not have sufficient profit, then the interest will be paid to the extent of available profit in the ratio of interest on capital.

(D) If a partner is admitted into a firm with a guarantee of certain profit, then the deficiency of profit (if any) shall be borne by the old partners in their capital ratio.

2026: 20 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Gaining Ratio	(I) Average Profit X 100/Normal rate of return
(B) Value of Goodwill	(II) Old Ratio - New Ratio
(C) Sacrificing Ratio	(III) Super Profit X 100/Normal rate of return
(D) Capitalised Value of average profit	(IV) New Ratio - Old Ratio

Choose the correct answer from the options given below:

2026: 29 May Shift 2

Varun and Karan are partners sharing profits and losses in the ratio of 2:1. Their capitals at the end of the financial year 2024-25 were Rs. 1,80,000 and Rs. 90,000. During the year 2024-25, drawings of Varun and Karan were Rs. 30,000 and Rs. 10,000 respectively, which had been duly debited to partner's capital accounts. Profit before charging interest on capital for the year was Rs. 24,000, the same had also been distributed in their profit sharing ratio. Further Karan brought additional capital of Rs. 20,000 on December 31, 2024. Calculate interest on capital for Varun @ 10% p.a. for the year 2024-25.

2025: 22 May Shift 2

Which of the following is not a feature of a partnership deed?

2022: 20 July Shift 1

From the following information, identify when goodwill is required to be calculated.

(a) Admission of a Partner

(b) Amalgamation of partnership firms

(d) Retirement and Death of any partner

(e) Preparation of Balance sheet

Choose the correct answer from the options given below :

2025: 31 May Shift 1

Match List-I with List-II

List-I	List-II
Interest on Drawings	Time (Month)
(A) When the amount is withdrawn at the beginning of each month.	(I) 6 months
(B) When the amount is withdrawn at the end of each month.	(II) 6.5 months.
(C) When the amount is withdrawn at the middle of each month.	(III) 5.5 months.
(D) When the amount is withdrawn at the end of each quarter.	(IV) 4.5 months.

Choose the correct answer from the options given below:

Calculate interest on drawings for the amount Rs. 6000 on January 31, 2019.

Solution

Interest on Drawings Calculation

Calculation of Time Period

Formula for Interest on Drawings

Computation

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