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If Bs current account starts with Rs 3000 debit and he receives interest on capital of Rs 8000 what will be the closing balance?

Answer and explanation

Correct answer: Rs 5000 credit

The debit balance is set off against the credit item of interest. Rs 8000 minus Rs 3000 equals Rs 5000 credit.

Related tags

Current AccountInterest On CapitalOpening DebitCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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