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A withdrew Rs 12000 in June and Rs 36000 in December. The accounting year ends in March and interest rate is twelve percent. What is interest on drawings?

Answer and explanation

Correct answer: Rs 2160

June withdrawal carries interest for ten months and December withdrawal for four months. Total interest is Rs 1200 plus Rs 1440 equal to Rs 2160.

Related tags

Specific DrawingsMonth BasisInterestCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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