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If interest on capital Rs 7000 is debited to partners account though it should be credited what is the effect?

Answer and explanation

Correct answer: Understated by Rs 14000

Debiting instead of correct credit creates a double difference. Therefore partners balance is understated by Rs 14000.

Related tags

Interest On CapitalWrong SideErrorAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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