Question

Numerical question Ahmad bashir and chin are having capital of Rs 200000 rs 150000 and rs 250000 respectively. It. Was found that interest on capitals has been allowed @12th instead of 10%.pass adjustment entry

Answer 1

Reverse interest given @12%. Add correct interest@10%.

This reduce interest cost from 12% to 10%, increases profit. Which is distributed to all in their sharing ratio. Not given, hence assumed to be equal.

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