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:

When interest on drawings is charged 'per annum' and the specific dates of withdrawal are unknown, calculate interest on the total drawings for an average period of 6 months. If the rate is given simply as '10' without 'p.a.', then interest is calculated on the total amount without considering the time period.

Answer 1

The Correct Option is D

Total amount withdrawn by Nandita during the year = Rs 3,00,000. Rate of interest on drawings = 10% per annum (p.a.). The question states that Nandita withdrew the amount "during the year". When the specific dates of drawings are not given, it is assumed that the drawings were made evenly throughout the year. In such cases, interest is calculated on the total drawings for an average period of 6 months. Average Period = 6 months = \( \frac{6}{12} \) years. Interest on Nandita's Drawings = Total Drawings \( \times \) Rate of Interest \( \times \) Average Period \[ \text{Interest} = 3,00,000 \times \frac{10}{100} \times \frac{6}{12} \] \[ \text{Interest} = 3,00,000 \times \frac{1}{10} \times \frac{1}{2} \] \[ \text{Interest} = 30,000 \times \frac{1}{2} = Rs 15,000 \]