M and N are partners in a firm and agree that an interest @12\% per annum should be charged on drawings. M draws Rs. 20,000 per month at the beginning - Accountancy MCQ CUET Accountancy 2025 22 May Shift 1 2026 | ExamTest.live

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M and N are partners in a firm and agree that an interest @12% per annum should be charged on drawings. M draws Rs. 20, 000 per month at the beginning of each month. The amount of interest to be charged from M is:

Solution & Step-by-step Explanation

Let's calculate the interest step-by-step:Total Drawings in the year: Total Drawings = 20, 000 \times 12 = Rs. 2, 40, 000 Average Period: When drawings are made monthly at the beginning of each month, the average period is computed as: Average Period = \frac{12 + 1}{2} = 6.5 months Interest Calculation: Interest = Total Drawings \times Rate \times \frac{Average Period}{12} Interest = 2, 40, 000 \times \frac{12}{100} \times \frac{6.5}{12} = 2, 40, 000 \times 0.12 \times \frac{6.5}{12} = Rs. 15, 600

Try it yourself before checking the explanation above.

M and N are partners in a firm and agree that an interest @12% per annum should be charged on drawings. M draws Rs. 20, 000 per month at the beginning of each month. The amount of interest to be charged from M is:

Rs. 14, 400

Rs. 13, 200

Rs. 15, 600

Rs. 15, 200

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