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If interest on capital five thousand rupees was credited twice and interest on drawings two thousand rupees was omitted how much is capital overstated in total?

Answer and explanation

Correct answer: Seven thousand rupees

Second credit of interest on capital overstates by five thousand and omission of interest on drawings overstates by two thousand. Total overstatement is seven thousand.

Related tags

Combined ErrorInterestCapital OverstatementCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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