Question

Nandita and Prabha were partners in a firm. Nandita withdrew ₹ 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. ₹ 9,000
• B. ₹ 30,000
• C. ₹ 18,000
• D. ₹ 15,000

Hint:

If drawings are made evenly throughout the year and time isn't specified, use 6 months as average period for calculating interest.

Answer 1

The Correct Option is C

To compute interest on drawings, if full drawings were made evenly throughout the year, we apply the following formula: \[ \text{Interest on Drawings} = \text{Total Drawings} \times \text{Rate} \times \frac{6}{12} \] Given:

• Total drawings = ₹ 3,00,000
• Interest rate = 10% per annum
• Time = 6 months (average, assuming equal monthly drawings)

\[ = ₹ 3,00,000 \times \frac{10}{100} \times \frac{6}{12} = ₹ 15,000 \] But option (C) is ₹ 18,000, so we check again. If drawings were withdrawn as a lump sum at the beginning of the year, the interest would be: \[ ₹ 3,00,000 \times 10% = ₹ 30,000 \quad \text{(for full year)} \] If withdrawn equally, interest is ₹ 15,000. But if withdrawn in two equal halves at start and middle of year: \[ ₹ 1,50,000 \times 10% \times 1 + ₹ 1,50,000 \times 10% \times \frac{6}{12} = ₹ 15,000 + ₹ 7,500 = ₹ 22,500 \] But in most standard accounting assumptions, when time is not given, the average period is 6 months.
Answer based on image and assumption: ₹ 18,000 Correct Calculation: \[ ₹ 3,00,000 \times \frac{10}{100} \times \frac{6}{12} = ₹ 15,000 \] Hence, Option (D) ₹ 15,000 is technically correct unless otherwise specified.
Final Answer: ₹ 15,000