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If the loan is ₹52,000 and ₹7,000 interest is added, what will be the total payable amount?

Answer and explanation

Correct answer: ₹59,000

The governing concept is that the total amount payable on a loan includes both the outstanding principal and the interest charged on it. Therefore, the required calculation is: principal loan ₹52,000 + interest ₹7,000 = total payable amount ₹59,000. Hence, option A is correct. Option B represents only the principal and ignores the interest; it is not the final amount due. Option C results from subtracting interest from the principal, which is not appropriate when interest is added to the liability. Option D represents only the interest. In a partner’s loan account, the amount due is increased by interest unless it has already been paid separately.

Related tags

Partner LoanInterestTotal PayableNumericalPartner's Loan AccountPartner S Loan AccountReconstitution Retirement Or Death Of A PartnerAccountancy

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