1.

Assertion: Reeta and Geeta are partners in a firm sharing profits and losses in the ratio of 3:2. Geeta withdrew ₹ 50,000 during the year. Interest on drawings was calculated as ₹ 5,000 @ 10% p.a.Reason: interest on total drawings for the year is calculated for 6 months on average basis if the date of withdrawal is not given. Hence interest on Geeta’s drawings will be Rs.2500 a) Assertion is correct but Reason is wrong. b) Assertion is wrong but Reason is correct. c) Both assertion and reason are wrong. d) Both assertion and reason are correct.

Answer»

Correct option is b) Assertion is wrong but Reason is correct.



Discussion

No Comment Found

Related InterviewSolutions