Partnership

Accounting

Easy

common

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

Total drawings X Rate/100 X 6/12

Sum of Products X Rate/100 X 6/12

Total drawings X Rate/100

Sum of Products X Rate/100 X 1/12

✅ Correct Option: 4

Unequal amounts withdrawn at irregular intervals require the product method. Each drawing is multiplied by the months it remains outstanding, and interest $=$ Sum of products $\times \frac{Rate}{100} \times \frac{1}{12}$ . The average period shortcut of $\frac{6}{12}$ applies only to equal, regular drawings.

2022: 30 Aug Shift 2

Match List I with List II in context of not having partnership deed.

	LIST I		LIST II
A.	Interest on loan	I.	Equal
B.	Interest on drawings	II.	Will not be charged
C.	Salary	III.	@ 6% p.a.
D.	Profit sharing ratio	IV.	Will not be allowed/provided

Choose the correct answer from the options given below:

2026: 11 May Shift 1

A business has earned average profits of Rs. 2,00,000 during the last few years and the normal rate of return in a similar business is 10%. Ascertain the value of goodwill by capitalisation of average profits method, given that the value of net assets of the business is Rs. 10,20,000.

2025: 24 May Shift 1

Sumit, a partner in Tours and Travels withdrew money during the year ending March 31, 2020 from his capital account, for his personal use. Calculate interest on drawings at simple rate of interest of 10 percent per annum and if an amount of Rs. 4,000 per month was withdrawn by sumit at the end of each month.

2024

Match List-I with List-II

2025: 13 May Shift 2

Which section of the Partnership Act 1932, defines partnership?

2025: 31 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Gaining Ratio	(I) New Share - old Share.
(B) Sacrificing Ratio	(II) Old Share - New Share.
(C) Admission of Partner	(III) Partner may be paid amount more that what has actually due to him for hidden goodwill share.
(D) Retirement of Partner	(IV) Partner may or may not bring his share of goodwill in cash.

Choose the correct answer from the options given below:

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

Solution

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