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A partner made drawings on different dates during the year. Which is the most accurate method?

Answer and explanation

Correct answer: Simple interest method on each withdrawal

For irregular drawings interest on each withdrawal according to its date is most accurate. Average period is useful only for equal regular drawings.

Related tags

PartnershipAdjustmentsIrregular Drawings MethodPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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