Question

Arora and Gurmeet were partners in a firm sharing profits and losses in the ratio of 3 : 2. Starting from 1st October, 2024 Arora withdrew ₹ 30,000 at the beginning of each quarter for his personal use. Interest on drawings was to be charged @ 12% per annum. Interest on Arora's drawings for the year ended 31st March, 2025 was:

• A. ₹ 1,800
• B. ₹ 2,700
• C. ₹ 450
• D. ₹ 3,600

Hint:

For drawings at the \textbf{beginning} of each quarter:

• If number of quarters = n, then periods are: n, n-1, ..., 1 months
• Average period = \(\frac{n + 1}{2}\) months? Actually for beginning of quarter, average period = \(\frac{\text{First period} + \text{Last period}}{2}\)

For 2 quarters: 6 and 3 months \(\Rightarrow\) Average = 4.5 months.

Answer 1

The Correct Option is B