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What will be the one-year interest on a partner’s loan account balance of ₹1,24,000 at an annual rate of 14%?

Answer and explanation

Correct answer: ₹17,360

One-year interest = Principal × Rate = ₹1,24,000 × 14/100 = ₹17,360. Therefore, option C is correct. Option B results from an arithmetic error; 14% should be converted to 0.14 before multiplication. Exam tip: Always check the time period when calculating interest on a partner’s loan; apply proportionate time if it is not one year.

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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