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The deed says A annual salary of thirty six thousand rupees is payable irrespective of profit or loss. Firm has loss of twenty thousand rupees before salary. What is total loss after salary?

Answer and explanation

Correct answer: Fifty six thousand rupees

The special clause makes salary a charge against profit. Adding salary thirty six thousand to existing loss twenty thousand makes total loss fifty six thousand.

Related tags

Salary As ChargeLossPartnership DeedProfit DistributionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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