Question

If a partner withdraws equal amount at beginning of each quarter, then ______ are to be considered for interest on total drawings.

• A. \(5.5\) months
• B. \(6\) months
• C. \(4.5\) months
• D. \(7.5\) months

Hint:

For partnership drawings:
• Beginning of every month \(\rightarrow 6.5\) months
• Middle of every month \(\rightarrow 6\) months
• End of every month \(\rightarrow 5.5\) months
• Beginning of every quarter \(\rightarrow 7.5\) months
• Middle of every quarter \(\rightarrow 6\) months
• End of every quarter \(\rightarrow 4.5\) months These standard average periods are very important for accounting MCQs.

Answer 1

The Correct Option is B