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Interest on capital twenty thousand rupees should have been debited but was wrongly credited. Compared with correct position how much higher will available profit appear?

Answer and explanation

Correct answer: Forty thousand rupees

Interest on capital should have been debited but was credited. Difference from correct position is double which is forty thousand rupees.

Related tags

Interest On CapitalErrorAppropriation AccountProfit DistributionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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