A partner's drawings are ₹12,000 drawn evenly throughout the year. Interest on drawings @ 10% p.a. would be: MCQ with Answer and Explanation

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A partner's drawings are ₹12,000 drawn evenly throughout the year. Interest on drawings @ 10% p.a. would be:

A. ₹600

B. ₹300

C. ₹1,200

D. ₹550

Answer: Option A

Solution (By JKSSB Mock Tests)

If drawings are made evenly throughout the year, average period = 6 months. Interest = 12,000 × 10% × 6/12 = ₹600.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Which document is prepared to inform the supplier that his account has been debited due to purchase returns?

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Correct Answer: Option A

Explanation:
A debit note is sent to the supplier indicating that their account has been debited (reduced) in our books due to returned goods.

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The 'Quick Ratio' excludes inventory because:

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Correct Answer: Option D

Explanation:
Quick ratio considers only quick assets (liquid), inventory is less liquid, so excluded.

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Correct Answer: Option D

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