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The firm incurred a loss of ₹20000. The deed provides interest on capital in all circumstances and interest is ₹15000. What total loss will be distributed?

Answer and explanation

Correct answer: ₹35000

In such a case interest on capital increases the loss. Total loss to be distributed is ₹20000 plus ₹15000.

Related tags

PartnershipLossInterest On CapitalAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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