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What amount of interest is payable on a partner’s loan of ₹2,25,000 at 8% per annum for 9 months?

Answer and explanation

Correct answer: ₹13,500

Nine months must be expressed as \(9/12\) of a year. Interest = ₹2,25,000 × 8% × \(9/12\) = ₹13,500, so option B is correct. Option A results from using an incorrect period or calculation. In such questions, always convert months into a fraction of a year.

Related tags

Partner Loan AccountInterest CalculationRetirement Of PartnerAccountancy Class 12Simple InterestPartner's Loan AccountPartner S Loan AccountReconstitution Retirement Or Death Of A Partner

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