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Net profit is Rs 220000. Interest on capital is Rs 40000 salary is Rs 30000 reserve is Rs 20000 and interest on drawings is Rs 10000. What will be the remaining distributable profit?

Answer and explanation

Correct answer: Rs 140000

Interest on drawings is added to net profit and appropriations are deducted. Rs 220000 plus Rs 10000 minus Rs 90000 equals Rs 140000.

Related tags

Profit DistributionAppropriationRemaining ProfitPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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