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Under fluctuating capital method A interest on capital is eight thousand rupees and salary is twelve thousand rupees. If both are omitted how much will capital be understated?

Answer and explanation

Correct answer: Twenty thousand rupees

Both items are credited to partner account. If omitted capital is understated by their total twenty thousand rupees.

Related tags

OmissionErrorCapital UnderstatementCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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