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A and B share profits in the ratio 4:3. A's opening capital was ₹180000 and he introduced ₹60000 additional capital on 1 October. Interest on capital is 10% per annum. What is A's interest on capital?

Answer and explanation

Correct answer: ₹21000

Opening capital earns interest for the full year and additional capital for six months. Calculate interest according to time.

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PartnershipAdjustmentsInterest On CapitalPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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