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If interest on As capital is Rs 3000 and interest on Bs capital is Rs 2000 what will be total debit in Profit and Loss Appropriation Account?

Answer and explanation

Correct answer: Rs 5000

Interest on capital is an appropriation and is debited to appropriation account. Total debit is Rs 3000 plus Rs 2000 equal to Rs 5000.

Related tags

Appropriation AccountInterest On CapitalNumericalCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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