Partnership

Accounting

Medium

common

Calculate interest on drawing if Ram withdrew Rs. 3,000 per month at the beginning of each month for the whole year, if interest on drawing is charged @ 9 % per annum.

Rs 1455

Rs 1745

Rs 1485

Rs 1755

✅ Correct Option: 4

Since Ram withdraws Rs. 3,000 per month at the beginning of each month, the money is used for varying periods throughout the year.

Total drawings for the year = Rs. 3,000 × 12 = Rs. 36,000

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

Average Period = $\frac{n + 1}{2}$ months, where $n$ = number of months

Average Period = $\frac{12 + 1}{2}$ = 6.5 months

Interest on drawings is calculated using:

Interest = Total Drawings × Rate × Time / 100

Since the time is in months, we convert the annual rate accordingly:

Interest = $\frac{36,000 × 9 × 6.5}{12 × 100}$

Interest = $\frac{2,106,000}{1,200}$

Interest = Rs. 1,755

Note: When drawings are made at the beginning of the month, we use 6.5 months as average period (not 5.5 months which is used when drawings are at the end of each month).

2025: 3 June Shift 2

Neha contributed Rs. 30,000 and Solani Rs. 90,000 as capital. What will be Saloni's share in profits if the partnership agreement is silent?

2025: 13 May Shift 2

A and B are partners in a firm with their fixed capital Rs 4,00,000 and 5,00,000 respectively. After preparation of accounts, it was found that interest on capital @ 10% p.a as provided by the partnership deed is omitted. In order to rectify the mistake, A's Current account will be _____?

2025: 2 June Shift 2

Identify the correct statement from the given below :-

2023: 11 June Shift 3

__________ is/are not true with regard to Limited liability partnership.

(A) Separate Legal entity

(B) Unlimited liability for one partner

(D) Perpetual Succession

(E) Unlimited liability of partners

Choose the correct answer from the options given below :

2025: 3 June Shift 2

The Profit and Loss Appropriation Account is merely an extension of the Profit and Loss Account of the firm, which, among the following, is not shown in the Profit and Loss Appropriation Account?

2026: 11 May Shift 1

Jai and Shyam are partners in a firm with no partnership deed and sharing profits and losses equally. Jai withdrew Rs. 2,000 per month regularly on the first day of every month during the year 2024-2025 for personal expenses. Jai wants interest on drawings to be charged @ 5% p.a. Calculate Jai's interest on drawings.

Calculate interest on drawing if Ram withdrew Rs. 3,000 per month at the beginning of each month for the whole year, if interest on drawing is charged @ 9 % per annum.

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