Question

Nandita and Prabha were partners in a firm. Nandita withdrew Rs 3,00,000 during the year for personal use. The partnership deed provides for charging interest on drawings @ 10\% p.a. Interest on Nandita's drawings for the year ended 31st March, 2024 will be :

• A. Rs 9,000
• B. Rs 30,000
• C. Rs 18,000
• D. Rs 15,000

Hint:

If drawings are made "during the year" and dates aren't specified, calculate interest for an average period of 6 months. The 'p.a.' (per annum) in the interest rate is crucial; without it, the average period adjustment isn't needed.

Answer 1

The Correct Option is D

Step 1: Identify Key Information:
Total Drawings = Rs 3,00,000
Interest Rate = 10% p.a.
Period = "during the year" (dates not specified).
Step 2: Determine the Average Period:
When withdrawal dates are not given, interest is calculated for an average period of 6 months.
Average Period = 6/12 years.
Step 3: Calculate Interest on Drawings:
Interest = Total Drawings \( \times \) Rate \( \times \) Average Period
Interest = Rs 3,00,000 \( \times \) \( \frac{10}{100} \) \( \times \) \( \frac{6}{12} \)
Interest = Rs 30,000 \( \times \) \( \frac{1}{2} \) = Rs 15,000.
Conclusion:
The interest on Nandita's drawings is Rs 15,000.