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What will be the one-year interest on ₹84,000 in a partner’s loan account at an annual rate of 15%?

Answer and explanation

Correct answer: ₹12,600

Interest on the loan account = Principal × Rate × Time = ₹84,000 × 15/100 × 1 = ₹12,600. Therefore, option B is correct. Option A underestimates the percentage, while options C and D overstate the interest. Exam tip: Calculate 15% as 10% (₹8,400) plus 5% (₹4,200).

Related tags

Partner Loan AccountRetirement Of PartnerInterest CalculationPartnership AccountingPartner's Loan AccountPartner S Loan AccountReconstitution Retirement Or Death Of A PartnerAccountancy

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