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If the partnership deed requires 10% of profit to be transferred to an employee welfare fund, what will be the fund amount on a profit of Rs 160,000?

Answer and explanation

Correct answer: Rs 16,000

Ten percent means one-tenth of the profit. Calculation: Rs 160,000 × 10/100 = Rs 16,000, so the fund equals Rs 16,000. Closest distractor: Rs 15,000 is a near estimate but incorrect (it would represent about 9.375%). Exam tip: convert percent to a decimal (0.10) and multiply the profit to get the amount quickly.

Related tags

Welfare FundProfit AppropriationNumericalPartnership DeedAccountingPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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