Question

Abha, Manju, and Rhea were partners in a firm sharing profits and losses in the ratio of \( 3 : 3 : 4 \). During the year ended 31\textsuperscript{st March, 2023, Rhea withdrew ₹ 30,000 at the beginning of each half year. Interest on Rhea’s drawings @ 10\% p.a. for the year ended 31\textsuperscript{st} March, 2023 will be:}

• A. ₹ 6,000
• B. ₹ 4,500
• C. ₹ 3,000
• D. ₹ 1,500

Hint:

Interest on drawings is calculated based on the amount withdrawn and the duration it remains in the firm. For withdrawals at the beginning of the period, consider the total time for each withdrawal.

Answer 1

The Correct Option is B

Interest on Rhea’s drawings is calculated as follows: - Rhea withdrew ₹ 30,000 at the commencement of each half-yearly period. - The initial withdrawal of ₹ 30,000, made at the start of the first half-year, remained in the firm for 12 months, resulting in interest calculated as: \[Interest} = \frac{30,000 \times 10\% \times 12}{12} = ₹ 3,000\] - The subsequent withdrawal of ₹ 30,000, made at the start of the second half-year, remained in the firm for 6 months, yielding interest of: \[Interest} = \frac{30,000 \times 10\% \times 6}{12} = ₹ 1,500\] Consequently, the aggregate interest on Rhea's drawings amounts to: \[3,000 + 1,500 = ₹ 4,500.\]