PRC-1 · Chapter 10 · Question 11 of 100
Mano and Aadi are partners sharing profits equally. Net loss for the year is Rs. (12,800). Interest on drawings is Rs. 480 (total). Interest on capital is Rs. 2,400 (total). What is the residual loss to be distributed among the partners?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 14,720 loss
Explanation
Residual loss = Net Loss (12,800) - Interest on Capital (2,400) + Interest on Drawings (480) = (14,720). This total loss is then split between Mano and Aadi.
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