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If the deed assumes drawings at the beginning of each month, how will the average period compare with ordinary monthly drawings?

Answer and explanation

Correct answer: It will be longer

When drawings are made at the beginning of each month, the money remains withdrawn for longer. So the interest period is taken longer.

Related tags

Monthly DrawingsBeginningInterest PeriodPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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