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If interest on capital is one thousand rupees and share of loss is three thousand rupees what is the net effect on capital?

Answer and explanation

Correct answer: Decrease of two thousand rupees

Interest on capital increases and loss decreases capital. Increase of one thousand and decrease of three thousand gives net decrease of two thousand.

Related tags

Interest LossNet EffectCapitalCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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