Question

Ravi, Mohan and Vinod were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. The partnership deed provided that interest on partners’ drawings will be charged @ 12% p.a. Starting from 1st July, 2023, Mohan withdrew ₹20,000 every month for his personal use. For the year ended 31st March, 2024 interest on Mohan’s drawings will be charged for \_\_\_\_\_\_\_\_ months.

• A. 6$\dfrac{1}{2}$
• B. 6
• C. 5$\dfrac{1}{2}$
• D. 5

Hint:

For monthly drawings made at the beginning of each month, use average period = 6.5 months. Use 6 months for mid-month, and 5.5 for end of month.

Answer 1

The Correct Option is A

Mohan withdrew a fixed amount (₹20,000) every month starting from 1st July, 2023 to 31st March, 2024.
This constitutes **monthly drawings for 9 months**.
When monthly drawings are made at the **beginning of each month**, the average period = 6.5 months.
Why?
For beginning of each month, average time = $\dfrac{n+1}{2}$ months
Here, $n = 12 - 6 + 1 = 9$ months
$\Rightarrow$ Average period = 6.5 months
Hence, interest will be charged for 6.5 months.