A loan account has credit items of ₹175000 and debit payment of ₹65000. If credit items include interest of ₹10000, what is the closing credit balance?

Correct answer: ₹110000

The direct answer is A: the closing credit balance is ₹110,000. The account has total credit items of ₹175,000 and total debit payments of ₹65,000. To find a credit balance, subtract total debits from total credits: ₹175,000 − ₹65,000 = ₹110,000. The fact that ₹10,000 of the credits is interest does not change this arithmetic, because it is already included in the stated total credit items. Option A is correct. Option B, ₹100,000, wrongly subtracts the interest again from the total credit. Option C, ₹120,000, does not use the complete debit amount correctly. Option D, ₹240,000, effectively combines amounts instead of finding the balance. Remember: when totals are already given, do not recalculate or remove a component that is included; simply compare total credit and total debit.