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Profit is ₹80000. Partner salary due is ₹50000 and interest on capital due is ₹70000. The deed gives priority to salary. How much interest on capital can be allowed?

Answer and explanation

Correct answer: ₹30000

The priority salary of ₹50000 is allowed first. Only remaining profit ₹30000 is available for interest on capital.

Related tags

PartnershipPriorityInsufficient ProfitAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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