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If the partnership deed provides 12% per annum interest on a partner's loan and Rs 50,000 was lent for six months, what is the interest for six months?

Answer and explanation

Correct answer: Rs 3000

Use I = P × R × T. Here P = Rs 50,000, R = 12% p.a., T = 6/12 = 0.5 year. So I = 50,000 × 12/100 × 0.5 = Rs 3,000. Option A (Rs 6,000) is incorrect because it represents interest for a full year at 12%. Exam tip: always convert months to fraction of a year and use the annual rate when calculating partner loan interest.

Related tags

Partner LoanInterestNumericalPartnership DeedAccountancyPartnership Accounts Basic ConceptsClass 12 Mcq

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