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If share of loss was credited like interest on capital instead of being debited in capital account and amount is ten thousand rupees how much will capital be overstated?

Answer and explanation

Correct answer: Twenty thousand rupees

Loss should have been debited but was credited. Difference from correct position is double the amount which is twenty thousand rupees.

Related tags

Loss ShareErrorOverstatementCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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