How the problems are made
Each problem is an invented firm with two or three partners, a deed and a year's figures. Every figure is chosen so the answers come out in whole rupees, dollars or pounds, so marking is exact. CBSE follows the NCERT chapter on partnership basics; Cambridge and AAT get the tasks their syllabus names, with the appropriation account as a statement rather than a two-sided account.
A worked example
In set KAVERY the deed charges interest on drawings at 10% a year, and the books close on March 31, 2026. Kunal draws ₹3,000 at the start of every month, ₹36,000 in all. His first drawing is out 12 months and his last 1, so the average period is 6.5 months: 36,000 × 10% × 6.5/12 = ₹1,950. Lata draws ₹19,000 on April 30, ₹15,000 on August 1, ₹4,000 on January 31 and ₹17,000 on March 1, which run 11, 8, 2 and 1 months. The products add to 2,09,000 + 1,20,000 + 8,000 + 17,000 = 3,54,000, so her interest is 3,54,000 × 10% × 1/12 = ₹2,950. Open set KAVERY
What each task covers
Drawings: average period, product method, interest per drawing, and the six-month rule. Capital: interest with capital added or withdrawn. Appropriation: salaries, commission, interest and shares, including a loss year for CBSE. Accounts: capital and current accounts, fixed or fluctuating. Guarantee and past adjustments are CBSE only.
Questions
How do you calculate interest on drawings?
Interest is the amount drawn × the rate ÷ 100 × the months it was out ÷ 12. Months count from the date of each drawing to the last day of the year. For equal drawings every month or quarter, use the average period; for different amounts on different dates, use the product method.
Why is interest charged for 6.5 months on drawings at the start of each month?
The first drawing is out for 12 months and the last for 1, so the average is (12 + 1) ÷ 2 = 6.5 months. Drawn mid-month it is 6 months; at the end of each month (11 + 0) ÷ 2 = 5.5. Quarterly drawings use 7.5 months at the start of each quarter and 4.5 at the end.
What is the product method?
Multiply each drawing by the months left in the year, add the products, then interest = total of products × rate ÷ 100 × 1/12. It gives the same answer as working the interest on each drawing separately.
What if the dates of the drawings are not given?
NCERT takes the drawings as spread evenly through the year and charges interest for 6 months on the total. The problems here say so whenever the dates are missing.
What is the difference between fixed and fluctuating capital?
With fixed capitals each partner has a capital account, which changes only when capital is brought in or withdrawn, and a current account for drawings, interest, salary and the share of profit. With fluctuating capitals everything goes through one capital account. NCERT uses fluctuating capitals when a question does not say.
Is interest on capital allowed when the firm makes a loss?
Not under NCERT's rules for CBSE: in a loss year no interest on capital, salary or commission is allowed, though interest on drawings is still charged. If the profit is less than the interest on capital, the profit is shared in the ratio of the interest.
What happens if there is no partnership deed?
In India the Partnership Act 1932 applies: profits shared equally, no interest on capital or drawings, no salary, and 6% a year on a partner's loan. The UK Partnership Act 1890 is the same except that a partner's advance earns 5% a year.
Sources, checked October 27, 2026: NCERT Accountancy, Partnership Accounts, class 12, chapter 1: Accounting for Partnership: Basic Concepts (PDF); Cambridge IGCSE Accounting 0452 syllabus for 2026 (PDF), topic 5.2; Cambridge O Level Accounting 7707 syllabus for 2026 (PDF), topic 5.2; Cambridge International AS & A Level Accounting 9706 syllabus for 2026 to 2028 (PDF), topic 1.5.3; AAT Level 3 Diploma in Accounting specification, version 5.13 (PDF), Preparing Financial Statements 7.3 and 7.4; Partnership Act 1890, section 24.