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Net profit is Rs 160000 and interest on drawings is Rs 10000. Interest on capital claim is Rs 70000 and salary claim is Rs 120000. No order is given. What is the available amount?

Answer and explanation

Correct answer: Rs 170000

Interest on drawings is credited in appropriation account. So available amount is Rs 160000 plus Rs 10000 equal to Rs 170000.

Related tags

Available ProfitInterest On DrawingsInsufficient ProfitProfit DistributionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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