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A withdrew ₹15000 on 1 June and ₹25000 on 1 November. The year ends on 31 March and the interest rate is 8%. What is the interest on drawings?

Answer and explanation

Correct answer: ₹1800

The first drawing carries interest for ten months and the second for five months. Product method is best when dates are given.

Related tags

PartnershipProduct MethodDrawings InterestAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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