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A and B have capitals of ₹300000 and ₹200000. Profit ratio is equal. Interest on capital is 8%. If profit is ₹70000 and there is no other adjustment what is B's total profit?

Answer and explanation

Correct answer: ₹35000

Interest on capital is A ₹24000 and B ₹16000. The balance ₹30000 is shared equally so B's total should be ₹31000.

Related tags

PartnershipInterest On CapitalProfit DistributionAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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