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 interes - Accountancy MCQ CUET Accountancy 2025 30 May Shift 1 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

To calculate interest on persistent monthly drawings at the end of each month, we apply the average period formula:Total annual drawings: Total Drawings = 2, 500 \times 12 = Rs. 30, 000 Average Period (End of each month): Average Period = \frac{11 + 0}{2} = 5.5 months Interest on Drawings Calculation: Interest = Total Drawings \times Rate \times \frac{Average Period}{12} Interest = 30, 000 \times \frac{12}{100} \times \frac{5.5}{12} = 30, 000 \times 0.12 \times \frac{5.5}{12} = 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 1,675

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