When the date of drawing is not specified, interest on drawings is calculated for Option 1: One full year. Option 2: 6.5 month. Option 3: 5.5 months. Option 4: 6 months.

Answer: 6 months. Solution: When the date of drawing is not specified, the assumption is that the partner has withdrawn money uniformly throughout the year. In such cases, interest on drawings is calculated for an average period of 6 months (half the financial year). This convention exists because: - If drawings are made evenly throughout the year, some amount is withdrawn at the beginning (outstanding for 12 months) and some at the end (outstanding for a very short period) - On average, the money withdrawn remains outside the business for approximately 6 months Formula for Interest on Drawings: When date is not specified = Total Drawings x Rate x 6/12 For example, if a partner withdraws ₹1,20,000 during the year (date not specified) and interest is charged @10% p.a.: Interest on Drawings = 1,20,000 x 10/100 x 6/12 = ₹6,000 The correct answer is Option 4: 6 months.

Partnership

Accounting

Easy

common

When the date of drawing is not specified, interest on drawings is calculated for

One full year.

6.5 month.

5.5 months.

6 months.

✅ Correct Option: 4

When the date of drawing is not specified, the assumption is that the partner has withdrawn money uniformly throughout the year.

In such cases, interest on drawings is calculated for an average period of 6 months (half the financial year).

This convention exists because:

If drawings are made evenly throughout the year, some amount is withdrawn at the beginning (outstanding for 12 months) and some at the end (outstanding for a very short period)
On average, the money withdrawn remains outside the business for approximately 6 months

Formula for Interest on Drawings:

When date is not specified = $\text{Total Drawings} \times \text{Rate} \times \frac{6}{12}$

For example, if a partner withdraws ₹1,20,000 during the year (date not specified) and interest is charged @10% p.a.:

Interest on Drawings = $1,20,000 \times \frac{10}{100} \times \frac{6}{12} = ₹6,000$

The correct answer is Option 4: 6 months.

2022: 20 Aug Shift 2

Match List I with List II

List I	List II
A. Partner's Salary	I. P & L A/c Dr.
B. Manager's Salary	II. P & L Appropriation A/c Dr.
C. Distribution of Loss	III. P & L A/c Cr.
D. Commission Received	IV. P & L Appropriation A/c Cr.

Choose the correct answer from the options given below:

2026: 24 May Shift 1

When the partners withdraw different amounts of money at different time intervals, the interest is calculated using the following formula:

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 :

2022: 23 Aug Shift 2

Calculate net profit as per P & L A/c for the year ending 31 March, 2022 from the following information :

share of profit transferred to Capital A/c's of partners :

Ram Rs. 7,000

Shyam Rs. 3,500

Interest on capital :

Ram Rs. 1,500

Shyam Rs. 500

Interest on Drawings :

Ram Rs. 300

Shyam Rs. 200

Ram's salary Rs. 1,000

2022: 23 Aug Shift 2

Sudhir and Vimal came into partnership with profit sharing ratio of 3 : 2. Due to paucity of time, Sudhir was unable to give time to business so Vimal acted as principle and took all financial and operational decisions.

Due to break down of Covid 19, business suffered a loss of 4,00,000. State the amount of loss to be borne by Sudhir.

2025: 3 June Shift 2

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.

When the date of drawing is not specified, interest on drawings is calculated for

Solution

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