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B withdrew capital of ₹60000 on 1 October. The year is from 1 April to 31 March and interest on capital is 10%. What is the reduction in interest?

Answer and explanation

Correct answer: ₹3000

The capital withdrawal affects six months. Reduction is (60000 \times 10% \times \frac{6}{12}) equal to ₹3000.

Related tags

PartnershipCapital WithdrawalInterestAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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