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If interest on capital is ₹8,000 and profit is ₹45,000, what profit remains after providing interest?

Answer and explanation

Correct answer: Thirty-seven thousand rupees

The governing concept is deduction of an appropriation from the available partnership profit. The remaining profit is calculated as ₹45,000 − ₹8,000 = ₹37,000. Therefore, option A is correct. ₹8,000 represents the interest provided, while ₹45,000 is the initial profit. Adding the two amounts would produce the incorrect distractor of ₹53,000 rather than the balance left for distribution.

Related tags

Interest On CapitalRemaining ProfitNumericalProfit DistributionPartnership AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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