If the deed gives twelve percent interest on drawings and the partner withdrew during the year, correct calculation will depend on what?

Correct answer: Amount and time period

The correct answer is option C: the calculation depends on the amount withdrawn and the time for which that amount remained withdrawn. Interest on drawings is compensation charged to a partner because partnership money was taken out for personal use. The basic calculation is Interest = Amount × Rate × Time, with time expressed as a fraction of a year. At 12%, a withdrawal of Rs 10,000 for half a year would give Rs 10,000 × 12/100 × 1/2 = Rs 600. If money is withdrawn earlier, interest is generally higher because it is used for a longer period; if withdrawn later, interest is lower. Option A is wrong because profit ratio is used for sharing profits, not for measuring interest on a particular withdrawal. Option B is wrong because capital ratio does not determine the charge on drawings. Option D is wrong because bank balance alone does not tell us the partner's withdrawal amount and duration. Always read the dates carefully.