A partner's drawings are ₹12,000 drawn evenly throughout the year. Interest on drawings @ 10% p.a. would be: MCQ with Answer and Explanation

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A partner's drawings are ₹12,000 drawn evenly throughout the year. Interest on drawings @ 10% p.a. would be:

A. ₹1,200

B. ₹300

C. ₹600

D. ₹550

Answer: Option C

Solution (By JKSSB Mock Tests)

If drawings are made evenly throughout the year, average period = 6 months. Interest = 12,000 × 10% × 6/12 = ₹600.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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The concept of 'Cost Drivers' is fundamental to which costing technique?

A. Standard Costing

B. Activity Based Costing (ABC)

C. Batch Costing

D. Marginal Costing

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Correct Answer: Option B

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ABC uses cost drivers (e.g., number of setups, machine hours) to allocate overheads to products based on the activities they consume.

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The 'Trial Balance' is a:

A. Memorandum book

B. Subsidiary book

C. Principal book

D. Statement

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Correct Answer: Option D

Explanation:
It is a statement, not a book of accounts.

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Question #3

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Which of the following statements regarding the Accounting Equation is INCORRECT?

A. Assets = Capital - Liabilities

B. Assets = External Equities + Internal Equities

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Correct Answer: Option A

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