Question
Accountancy Question on Interest
Select the conditions required for computing interest on drawings using average period method:
A. Equal amount of drawings
B. Fixed interval of drawings
C. Varying amounts of drawings
D. Different interval of drawings
E. Rate of Interest
Choose the correct answer from the options given below:
A
A, D and E only
B
A, C and B only
C
A, C and D only
D
A, B and E only
Answer
A, B and E only
Explanation
Solution
The correct option is (D):A, B and E only