Himanshu withdrew Rs. 2,500 at the end of each month. The partnership deed provides for charging of interest on drawings @ 12% p.a. Calculate interest - Accountancy MCQ CUET Accountancy 2025 29 May Shift 2 2026 | ExamTest.live

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Himanshu withdrew Rs. 2,500 at the end of each month. The partnership deed provides for charging of interest on drawings @ 12% p.a. Calculate interest on Himanshu's drawings for the year ended March 31, 2017.

Solution & Step-by-step Explanation

When equal amounts are withdrawn at the end of each month for 12 months, the average period taken for interest computation is 5.5 months .Total Drawings = Rs. 2, 500 \times 12 = Rs. 30, 000 Rate of Interest = 12% p.a. $ Interest on Drawings = Total Drawings \times \frac{Rate}{100} \times \frac{Average Period}{12} $ Interest = 30, 000 \times \frac{12}{100} \times \frac{5.5}{12} = 300 \times 5.5 = Rs. 1, 650

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Himanshu withdrew Rs. 2,500 at the end of each month. The partnership deed provides for charging of interest on drawings @ 12% p.a. Calculate interest on Himanshu's drawings for the year ended March 31, 2017.

Rs 1,950

Rs 1,650

Rs 3,600

Rs 1,800

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