Home › CBSE Class 12 (Commerce) › Accountancy › Accounting for Partnership Firms: Fundamentals › Monthly drawings are taken on the first day of e…
Monthly drawings are taken on the first day of each month. Average period for interest?
ASix months exactly
BFive and a half months
CSix and a half months
DSeven full months
Answer & Solution
Correct answer: C. Six and a half months
Average of 12 and 1 months is 6.5, since the first drawing is outstanding 12 months and the last 1 month.
Related questions
In a sole proprietorship, where does net profit go?If the deed is silent, how are losses shared?Interest on capital is allowed on capital for what period?Where do partners' capital accounts appear in the balance sheet?A partner's capital account is fixed. Where is his share of profit credited?Rs. 9,000 of omitted interest on capital is shared equally by two partners. Each is chargeInterest on capital was omitted: Rameez Rs. 3,000, Zaheer Rs. 6,000, profits equal. Net adWhat is a past adjustment in partnership accounts?