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Interest on drawings twelve thousand rupees should have been credited but was wrongly debited. Compared with correct position how will available profit appear?

Answer and explanation

Correct answer: Lower by twenty four thousand rupees

It should have been credited but was debited. Difference from correct position is double which means lower by twenty four thousand rupees.

Related tags

Interest On DrawingsErrorAppropriationProfit DistributionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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