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easyMCQCUET Accountancy 2025 29 May Shift 22026Accountancy
1 mark

When drawings are made at the beginning of every month for the full year, interest on drawings is calculated for:

  1. A
    One Year.
  2. B
    6.5 months
  3. C
    6 months.
  4. D
    5.5 months.

Solution & Step-by-step Explanation

By applying the shortcut average period method:

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When drawings are made at the beginning of every month for the full year, interest on drawings is calculated for:
A
One Year.
B
6.5 months
C
6 months.
D
5.5 months.

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