₹70,000 is due and ₹10,000 is paid immediately. On what amount will interest on the loan be charged later?

Correct answer: ₹60,000

The governing rule is that subsequent interest is calculated on the amount remaining unpaid after any immediate settlement. The total amount due is ₹70,000, and the firm pays ₹10,000 at once. Thus the outstanding loan is calculated as ₹70,000 − ₹10,000 = ₹60,000. Interest payable later will therefore be based on ₹60,000, subject to the rate and period stated in the agreement. Option A is correct. Option B ignores the immediate payment, option C is the amount already paid rather than the amount outstanding, and option D incorrectly adds the payment to the original liability. The distinction between total due and unpaid balance is essential.