If the deed limits drawings to Rs 10000 per month and a partner withdraws Rs 16000, what is the main accounting effect?

Correct answer: Extra drawings may be restricted or charged interest as per deed

The direct answer is option A: the excess drawings may be restricted or may attract interest according to the deed. Drawings are amounts taken by a partner from the firm for personal use; they are not sales, salary, or profit. The stated monthly limit is Rs 10,000, but the partner takes Rs 16,000. Therefore the amount above the limit is Rs 6,000 for that month. The exact treatment depends on the partnership deed: it may prohibit or restrict the excess, or it may charge interest or apply another agreed consequence. Option A is correct because it recognizes this contractual treatment. Option B is wrong because a personal withdrawal cannot automatically become firm profit. Option C is wrong because no goods have been sold, so it is not sales. Option D is wrong because salary requires an agreed salary arrangement and an extra withdrawal does not automatically become salary. Exam cue: drawings reduce the partner’s entitlement or account; they do not create revenue.