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Net profit is Rs 120000 and interest on drawings is Rs 6000. Interest on capital claim is Rs 50000 and salary claim is Rs 90000. No order is given. What is available amount?

Answer and explanation

Correct answer: Rs 126000

Interest on drawings is credited in appropriation account. So available amount is Rs 120000 plus Rs 6000 equal to Rs 126000.

Related tags

Available ProfitInterest On DrawingsInsufficient ProfitProfit DistributionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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