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What will be the interest for 6 months on ₹2,00,000 in a partner’s loan account at an annual rate of 6%?

Answer and explanation

Correct answer: ₹6,000

Interest = Principal × Rate × Time = ₹2,00,000 × 6/100 × 6/12 = ₹6,000. The period of 6 months must be expressed as 6/12 of a year. ₹12,000 would be the interest for a full year, so it is incorrect. In exams, convert months into years when the rate is annual.

Related tags

Partner Loan AccountInterest CalculationPartnership AccountsRetirement Of PartnerAccountancy Class 12Partner's Loan AccountPartner S Loan AccountReconstitution Retirement Or Death Of A Partner

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