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The partnership deed provides interest on drawings but dates of drawings are not given. Drawings are assumed evenly throughout the year. What time period is used?

Answer and explanation

Correct answer: 6 months

When dates are absent and drawings are assumed uniform average period is six months. It changes only if beginning or end is specified.

Related tags

PartnershipDrawingsAverage PeriodAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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