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A withdrew Rs 10000 in April and Rs 20000 in October. The accounting year ends in March and interest rate is twelve percent. What is interest on drawings?

Answer and explanation

Correct answer: Rs 2200

April withdrawal carries interest for twelve months and October withdrawal for six months. Total interest is Rs 1200 plus Rs 1200 equal to Rs 2200.

Related tags

Specific DrawingsInterestAccounting YearCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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