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Net profit is Rs 110000. Interest on drawings is Rs 4000 and interest on capital is Rs 26000. What will be distributable profit?

Answer and explanation

Correct answer: Rs 88000

Interest on drawings is added and interest on capital is deducted from net profit. Rs 110000 plus Rs 4000 minus Rs 26000 equals Rs 88000.

Related tags

Distributable ProfitInterest AdjustmentsNumericalAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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