ISC ACCOUNTS 12 Interest On Drawing MCQs with solved answers

ISC ACCOUNTS 12 Interest On Drawing MCQs with solved answers

ISC ACCOUNTS 12 Interest On Drawing MCQs with solved answers (Question 1 to 5)

ISC ACCOUNTS 12 Interest On Drawing MCQs with solved answers
ISC ACCOUNTS 12 Interest On Drawing MCQs with solved answers

1. Interest on Drawing is charged when it is provided in the  :
(a) Partnership Deed
(b) Indian Partnership Act, 1932
(c) Company Act, 2013
(d) None of these

2. If Partnership Deed is Silent, Interest on drawings  :

(a) is not charged on partners Drawing.
(b) is charged on partners Drawing
(c) is charged on partners Drawing @ 6% p.a.
(d) is charged on partners Drawing@12% p.a.

3. Interest on Drawings is income to the firm and an expense to the partners. The amount of interest on drawings will be credited to the Profit and Loss Appropriation Account and will be debited :

(a) partner’s capital Account (Individually).
(b) partner’s current Account (Individually).
(c) a and b both
(d) Profit and Loss Account
4. If Partnership Deed Provides, interest on drawings  :

(a) is not charged on partners Drawing.
(b) is charged on partners Drawing at an agreed rate.
(c) is charged on partners Drawing @ 6% p.a.
(d) is charged on partners Drawing@12% p.a.

5. Interest on partner’s Drawing transfer to Profit and Loss Appropriation A/c what journal entry will be passed in the books of Firm.
(a) Interest on Drawing A/c  Dr.
To Partner’s Capital /current A/c (Individually)
(Crediting ‘Interest on Drawing’ to Partner’s  Capital/current A/c)
(b) Interest on Drawing A/c  Dr.
To Profit and Loss  A/c (Individually)
(Interest on Drawing transferred to Profit & Loss Appropriation A/c)
(c) Profit and Loss Appropriation A/c Dr.
To Interest on Drawing A/c
(Interest on Drawing transferred to Profit & Loss Appropriation A/c)
(d) Interest on Drawing A/c  Dr.
To Profit and Loss Appropriation A/c
(Interest on Drawing transferred to Profit & Loss Appropriation A/c)

ISC ACCOUNTS 12 Interest On Capital MCQs with solved answers

Answer – Question Number 1 To 5 

1. Answer- (a) Partnership Deed

2. Answer- (a) is not charged on partners Drawing.

3. Answer- (c) a and b both

4. Answer- (b) is charged on partners Drawing at an agreed rate.
5. Answer- (d) Interest on Drawing A/c  Dr.
To Profit and Loss Appropriation A/c
(Interest on Drawing transferred to Profit & Loss Appropriation A/c)

ISC ACCOUNTS 12 Interest On Drawing MCQs with solved answers (Question 6 to 10)

ISC ACCOUNTS 12 Interest On Drawing MCQs with solved answers
ISC ACCOUNTS 12 Interest On Drawing MCQs with solved answers

6. Date of drawings is not given in the question, interest on Drawing is calculated for an average period of 

(a) six months
(b) Five months
(c) Eight months
(d) Four months

7. Mohit, Rachit, and  Mayank started a partnership business on 1st April, 2020. Their capital contributions were ₹4,00,000 , ₹3,00,000 and ₹2,00,000 respectively. Their Drawings are ₹50,000, ₹ 40,000, and ₹30,000 respectively. Interest charged on Drawings @ 6 % p.a. Calculate interest on Drawing for the year ending31st March 2021. Interest on drawing will be charged :

(a) ₹3,000,₹2,400,₹1,800
(b) ₹1,500,₹1,500,₹900
(c) ₹1,500,₹1,200,₹900
(d) ₹3,000,₹2,400,₹900

8. Mohita is a partner in a firm, her withdrawals are as follows:-  

May 1st, 2019  ₹10,000

July 1st, 2019  ₹12,000

October 1st, 2019  ₹ 15,000

November 30th, 2019  ₹ 18,000

Interest charged on Drawings @ 9 % p.a. Calculate interest on Drawing for the year ending31st March 2020. Interest on drawing will be charged :

(a) ₹2,850
(b) ₹2,800
(c) ₹2,825
(d) ₹2,875

9. A fixed amount is withdrawn by the partners, at equal time intervals, say each month or each quarter or Middle of each year. Average period:

(a) (Time Left after the first Drawing+Time Left after the last Drawing)/2
(b) 11+1/2
(c) 10+2/2
(d) None of these

10. Kapil is a partner in a firm. during the year ending March  31, 2020, Kapil withdrew ₹ 30,000 quarterly. If interest is to be charged on drawings @ 3% per annum, calculate the amount of  interest to be charged at the end of the year in different situations would be as follows:

(i) When money is withdrawn at the beginning of each quarter. Interest on drawing will be charged :

(a) ₹2,250
(b) ₹3,600
(c) ₹1,800
(d) None of these

(ii) When money is withdrawn at the end of each quarter. Interest on drawing will be charged :

(a) ₹2,700
(b) ₹1,350
(c) ₹1,800
(d) None of these

(iii) When money is withdrawn at the middle of each quarter. Interest on drawing will be charged :

(a) ₹2,250
(b) ₹3,600
(c) ₹1,800
(d) None of these

Answer – Question Number 6 To 10

6. Answer- (a) six months

7. Answer- (c) ₹1,500,₹1,200,₹900

8. Answer- (a) ₹2,850

9. Answer- a) (Time Left after the first Drawing+Time Left after last Drawing)/2
10. Answer-

(i) (a) ₹2,250

(ii) (b) ₹1,350

(iii) (c) ₹1,800

ISC ACCOUNTS 12 Interest On Drawing MCQs with solved answers (Question 11 to 15)

ISC ACCOUNTS 12 Interest On Drawing MCQs with solved answers
ISC ACCOUNTS 12 Interest On Drawing MCQs with solved answers

11. Harshita is a partner in a firm. during the year ending March  31, 2020, Harshita withdrew ₹20,000 half-yearly. If interest is to be charged on drawings @ 9% per annum When money is withdrawn at the Beginning of every six months. Calculate the amount of interest to be charged at the end of the year:

(a) ₹1,800
(b) ₹1,350
(c) ₹1,500
(d) ₹2,700

12. Mraduta is a partner in a firm. during the year ending March  31, 2020, Mraduta withdrew ₹20,000 half-yearly. If interest is to be charged on drawings @ 9% per annum When money is withdrawn at the end of every six months. Calculate the amount of interest to be charged at the end of the year:

(a) ₹900
(b) ₹1,800
(c) ₹450
(d) None of these

13. ‘X’ withdrew  ₹4,000 per month at the beginning of every month from the firm for his personal use during the year ending March  31st, 2020. interest is charged at the rate of 12% per annum. The average period will be :

(a) 6.5 Month
(b) 6 Month
(c) 5.5 Month
(d) None of these

14. ‘Y’ withdrew  ₹2,000 per month at the end of every month from the firm for his personal use during the year ending March  31st, 2020. interest is charged at the rate of 9% per annum. The average period will be :

(a) 6.5 Month
(b) 6 Month
(c) 5.5 Month
(d) None of these

15. ‘Z’ withdrew  ₹6,000 per month in the middle of every month from the firm for his personal use during the year ending March  31st, 2020. interest is charged at the rate of 6% per annum. The average period will be :

(a) 6.5 Month
(b) 6 Month
(c) 5.5 Month
(d) None of these

Answer – Question Number 11 To 15

11. Answer- (d) ₹2,700

12. Answer- (a) ₹900

13. Answer- (a) 6.5 Month

14. Answer- (c) 5.5 Month
15. Answer- (b) 6 Month

ISC ACCOUNTS 12 Interest On Drawing MCQs with solved answers

ISC ACCOUNTS 12 Interest On Capital MCQs with solved answers

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Fundamentals of partnership MCQs and Answer 

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ISC ACCOUNTS 12 Interest On Drawing MCQs with solved answers
ISC ACCOUNTS 12 Interest On Drawing MCQs with solved answers

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