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A took goods costing (₹50000) from the firm for personal use. Selling price is calculated by adding (25%) profit on cost. By what amount will purchases be reduced in books?

Answer and explanation

Correct answer: (₹50000)

Goods withdrawn for personal use are deducted from purchases at cost. It is not treated as sale with profit unless the question says so.

Related tags

PartnershipAdjustmentsGoods WithdrawnPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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