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If net profit is Rs 90000 interest on capital is Rs 20000 and interest on drawings is Rs 5000 what is distributable profit?

Answer and explanation

Correct answer: Rs 75000

Interest on drawings is added to net profit and interest on capital is deducted. Rs 90000 plus Rs 5000 minus Rs 20000 equals Rs 75000.

Related tags

Distributable ProfitAdjustmentsNumericalPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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