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There is a trading loss of ₹60000. The deed states interest on capital is payable whether there is profit or loss. Interest on capital is ₹25000. What total loss will be distributed?

Answer and explanation

Correct answer: ₹85000

Interest on capital payable in all circumstances increases the loss. So total loss to be distributed is ₹60000 plus ₹25000 equal to ₹85000.

Related tags

PartnershipLossInterest On CapitalAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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