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If interest on drawings Rs 900 is omitted how will partners balance appear?

Answer and explanation

Correct answer: Overstated by Rs 900

Interest on drawings should have been debited to partner account. Omitting it makes partners claim higher by Rs 900.

Related tags

Interest On DrawingsOmissionPartner BalanceAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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