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Published on: 30/08/2022
QB365 provides a detailed and simple solution for every Possible Book Back Questions in Class 12 Accountancy Subject - Accounts of Partnership Firms-Fundamentals, English Medium. It will help Students to get more practice questions, Students can Practice these question papers in addition to score best marks.
Download Tamil Nadu 12th Standard Accountancy question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.
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1.
Sibi and Manoj are partners in a firm. Sibi is to get a commission of 20% of net profit before charging any commission. Manoj is to get a commission of 20% on net profit after charging all commission. Net profit for the year ended 31st December 2018 before charging any commission was Rs. 60,000. Find the commission of Sibi and Manoj. Also show the distribution of profit.
2.
Janani, Kamali and Lakshmi are partners in a firm sharing profits and losses equally. As per the terms of the partnership deed, Kamali is allowed a monthly salary of Rs. 10,000 and Lakshmi is allowed a commission of Rs. 40,000 per annum for their contribution to the business of the firm. You are required to pass the necessary journal entry. Assume that their capitals are fluctuating.
3.
Kavitha is a partner in a firm. She withdraws Rs. 2,500 p.m. regularly. Interest on drawings is charged @ 4% p.a. Calculate the interest on drawings using average period, if she draws
(i) at the beginning of every month
(ii) in the middle of every month
(iii) at the end of every month
4.
Santhosh is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 6% per annum. During the year ended 31st December, 2018 he withdrew as follows:
| Date | Rs. |
|---|---|
| February 1 | 2,000 |
| May 1 | 10,000 |
| July 1 | 4,000 |
| October 1 | 6,000 |
Calculate the amount of interest on drawings by using product method.
5.
Kumar is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 6% per annum. During the year ended 31st December, 2018 he withdrew as follows:
| Date | Rs. |
|---|---|
| March 1 | 4,000 |
| June 1 | 4,000 |
| September 1 | 4,000 |
| December 1 | 4,000 |
Calculate the amount of interest on drawings.
6.
Santhosh is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 6% per annum. During the year ended 31st December, 2018 he withdrew as follows:
| Date | Rs. |
|---|---|
| February 1 | 2,000 |
| May 1 | 10,000 |
| July 1 | 4,000 |
| October 1 | 6,000 |
Calculate the amount of interest on drawing.
7.
Ahamad and Basheer contribute Rs. 60,000 and Rs. 40,000 respectively as capital. Their respective share of profit is 2:1 and the profit before interest on capital for the year is Rs. 5,000. Compute the amount of interest on capital in each of the following situations:
(i) if the partnership deed is silent as to the interest on capital
(ii) if interest on capital @ 4% is allowed as per the partnership deed
(iii) if the partnership deed allows interest on capital @ 6% per annum.
8.
From the following balance sheets of Rajan and Devan who share profits and losses 2:1, calculate interest on capital at 6% p.a. for the year ending 31st December, 2018.
| Liabilities | Rs. | Rs. | Assets | Rs. |
|---|---|---|---|---|
| Capital accounts: | Sundry assets | 2,20,000 | ||
| Rajan | 1,00,000 | |||
| Devan | 80,000 | 1,80,000 | ||
| Profit and loss appropriation A/c | 40,000 | |||
| 2,20,000 | 2,20,000 |
On 1st April, 2018, Rajan introduced an additional capital of Rs. 40,000 and on 1st September, 2018, Devan introduced Rs. 30,000. Drawings of Rajan and Devan during the year were Rs. 20,000 and Rs. 10,000 respectively. Profit earned during the year was Rs. 70,000.
9.
From the following balance sheets of Subha and Sudha who share profits and losses in 2 : 3, calculate interest on capital at 5% p.a. for the year ending 31st December, 20
| Liabilities | Rs. | Rs. | Assets | Rs. |
|---|---|---|---|---|
| Capital accounts | Fixed assets | 70,000 | ||
| Subha | 40,000 | Current assets | 60,000 | |
| Sudha | 60,000 | 1,00,000 | ||
| Current liabilities | 30,000 | |||
| 1,30,000 | 1,30,000 |
Drawings of Subha and Sudha during the year were Rs. 8,000 and Rs. 10,000 respectively. Profit earned during the year was Rs. 30,000
10.
The capital account of Begum and Fatima on 1st January, 2018 showed a balance of Rs. 50,000 and Rs. 40,000 respectively. On 1st October, 2018, Begum introduced an additional capital of Rs. 10,000 and on 1st May, 2018 Fatima introduced an additional capital of Rs. 9,000. Calculate interest on capital at 4% p.a. for the year ending 31st December, 2018.
11.
Prakash and Supria were partners who share profits and losses in the ratio of 5 : 3. Balance in their capital account on 1st April, 2018 was Prakash Rs. 3,00,000 and Supria Rs. 2,00,000. On 1st July, 2018 Prakash introduced additional capital of Rs. 60,000. Supria introduced additional capital of Rs. 30,000 during the year. Calculate interest on capital at 6% p.a. for the year ending 31st March, 2019 and show the journal entries.
12.
State any six contents of a partnership deed.
13.
State the features of partnership.
14.
Murali and Sethu are partners in a firm. Murali is to get a commission of 10% of net profit before charging any commission. Sethu is to get a commission of 10% on net profit after charging all commission. Net profit for the year ended 31st March 2019 before charging any commission was Rs. 1,10,000. Find the amount of commission due to Murali and Sethu.
15.
Syed, Samuel and Sudhakar are partners in a firm sharing profits and losses equally. As per the terms of the partnership deed, Samuel is allowed a monthly salary of Rs. 2,000 and Sudhakar is allowed a commission of Rs. 6,000 per annum for their contribution to the business of the firm. You are required to pass the necessary journal entry. Assume that their capitals are fluctuating.
16.
17.
18.
Arul is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 12% p.a. During the year ended 31st December 2018 he drew as follows:
| Date | Rs. |
|---|---|
| March 1 | 3,000 |
| June 1 | 3,000 |
| September 1 | 3,000 |
| December 1 | 3,000 |
Calculate the amount of interest on drawings.
19.
Arun is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 12% p.a. During the year ended 31st December 2018 he drew as follows:
| Date | Rs. |
|---|---|
| March 1 | 6,000 |
| June 1 | 4,000 |
| September 1 | 5,000 |
| December 1 | 2,000 |
Calculate the amount of interest on drawings.
20.
A and B contribute Rs. 4,00,000 and Rs. 2,00,000 respectively as capital. Their respective share of profit is 3:2 and the profit before interest on capital for the year is Rs. 27,000. Compute the amount of interest on capital in each of the following situations:
(i) if the partnership deed is silent as to the interest on capital
(ii) if interest on capital @ 3% is allowed as per the partnership deed
(iii) if the partnership deed allows interest on capital @ 5% p.a.
21.
From the following balance sheets of Brindha and Praveena who share profits and losses in the ratio of 3:4, calculate interest on capital at 6% p.a. for the year ending 31st December 2017.
| Liabilities | Rs. | Assets | Rs. |
|---|---|---|---|
| Capital accoun | Sundry assets | 80,000 | |
| Brindha | 30,000 | ||
| Praveena | 40,000 | ||
| Profit and loss appropriation A/c | 10,000 | ||
| 80,000 | 80,000 |
On 1st July 2017, Brindha introduced an additional capital of Rs. 6,000 and on 1st October 2017, Praveena introduced Rs. 10,000. Drawings of Brindha and Praveena during the year were Rs. 5,000 and Rs. 7,000 respectively. Profit earned during the year was Rs. 31,000.
22.
From the following balance sheets of Subha and Sudha who share profits and losses equally, calculate interest on capital at 6% p.a. for the year ending 31st December 2017.
| Liabilities | Rs. | Assets | Rs. |
|---|---|---|---|
| Capital accounts: | Fixed assets | 30,000 | |
| Subha | 15,000 | Current assets | 20,000 |
| Sudha | 20,000 | ||
| 15,000 | |||
| 50,000 | 50,000 |
Drawings of Subha and Sudha during the year were Rs. 2,500 and Rs. 3,500 respectively. Profit earned during the year was Rs. 15,000.
1.
Calculation of commission:
Commission to sibi :
= Net profit before commission \(\times\) \(\frac{\% \ of \ commission}{100}\)
= 60000 \(\times\) \(\frac{20}{100}\) = Rs. 12,000
Commission to Manoj :
Net profit after sibi's commission = 60,000 - 12,000
= Rs. 48000
Manoj's commission = Net profit after sibi's commission x \(\frac{\% \ of \ commission}{(100 + \% \ of \ commission)}\)
= 48000 \(\times\) \(\frac{20}{(100+20)}\) = 48000 \(\times\) \(\frac{20}{120}\)
= Rs. 8000
2.
Salary to Kamali = Rs.10,000 \(\times\) 12 = Rs. 1,20,000
Commission to Lakshmi = Rs. 40,000
| Date | Particulars | L.F | Debit Rs. | Credit Rs. |
|---|---|---|---|---|
| Kamali's salary A/c Dr | 1,20,000 | |||
| To Kamali's capital A/c | 1,20,000 | |||
| (Kamali's salary transferred to his capital account) | ||||
| Lakshmi's commission A/c Dr | 40,000 | |||
| To Kamali's capital A/c | 40,000 | |||
| (Lakshmi's commission transferred to his capital account) | ||||
| Profit and loss appropriation A/c Dr | 1,60,000 | |||
| To Kamali's salary A/c | 1,20,000 | |||
| To Lakshmi's commission A/c | 40,000 | |||
| (Salary and commission account transferred) |
3.
Total amount withdrawn = 2,500 x 12 = Rs. 30,000
(i) If drawings are made at the beginning of every month:
Average period = 6.5
Interest on drawings = Total amount of drawings x Rate of interest x \(\frac{Average \ Period}{12}\)
= Rs. 30,000 x \(\frac{4}{100}\times\frac{6.5}{12}\)
= Rs.650
(ii) If drawing are made in the middle of every month:
Average period = 6
Interest on drawings = Total amount of drawings x Rate of interest x \(\frac{Average \ Period}{12}\)
= Rs. 30,000 x \(\frac{4}{100}\times\frac{6}{12}\) = Rs. 600
(iii) If drawings are made at the end of every month:
Average period = 5.5
Interest on drraawwimgs = Total amount of drawings x Rate of Interest x \(\frac{Average \ Period}{12}\)
= Rs. 30,000 x \(\frac{4}{100}\times\frac{5.5}{100}\) = Rs. 550
4.
Calculate the amount of interest on drawings by using product method.
Calculation of interest on drawings under product method.
| Date of drawings | Amount Withdrawn | Period up to December 31 (months) | Product Rs. |
|---|---|---|---|
| February 1 | 2,000 | 11 | 22,000 |
| May 1 | 10,00 | 8 | 80,000 |
| July 1 | 4,000 | 6 | 24,000 |
| October 1 | 6,000 | 3 | 18,000 |
| Sum of Product 1,44,000 | |||
Interest on drawings = Sum of product x Rate of interest x \(\frac{1}{12}\)
= 1,44,000 x \(\frac{6}{100}\) x \(\frac{1}{12}\)
= Rs. 720
5.
Interest on drawings = Amount of drawings x Rate of interest x Period of interest
| Withdrawal on March 1 | = Rs. 4,000 x \(\frac{6}{100}\) x \(\frac{10}{12}\) | = Rs.200 |
| Withdrawal on June 1 | = Rs. 4,000 x \(\frac{6}{100}\) x \(\frac{7}{12}\) | = Rs.140 |
| Withdrawal on September 1 | = Rs. 4000 x \(\frac{6}{100}\) x \(\frac{4}{12}\) | = Rs.80 |
| Withdrawal on December 1 | = Rs.4,000 x \(\frac{6}{100}\) x \(\frac{1}{12}\) | = Rs.20 |
| Total interest on drawings | = Rs.440 |
6.
Interest on drawings = Amount of drawings x Rate of interest x Period of interest
| Withdrawal on February 1 | = Rs. 2,000 x \(\frac{6}{100}\) x \(\frac{11}{12}\) | = Rs. 110 |
| Withdrawal on May 1 | = Rs.10,000 x \(\frac{6}{100}\) x \(\frac{8}{12}\) | = Rs. 400 |
| Withdrawal on July 1 | = Rs. 400 x \(\frac{6}{100}\) x \(\frac{6}{12}\) | = Rs. 120 |
| Withdrawal on October 1 | = Rs. 6000 x \(\frac{6}{100}\) x \(\frac{3}{12}\) | = Rs. 90 |
| Total interest on drawings | = Rs.720 |
7.
(i) No Interest on capital will not allowed as the partnership deed.
(ii) Profit before interest on capital is Rs. 5,000.
Computation of interest on capital:
Ahamed: 60,000 \(\times\) \(\frac{4}{100}\) = Rs. 2,400
Basheer : 40,000 \(\times\) \(\frac{4}{100}\) = Rs. 1,600
Since there is sufficient profit, interest on capital will be provided
(iii) Profit before interest on capital is Rs. 5,000
Computation of interest on capital :
Ahamed: 60,000 \(\times\) \(\frac{6}{100}\) = Rs. 3,600
Basheer: 40,000 \(\times\) \(\frac{6}{100}\) = Rs. 2,400
Since the profit is insufficient, interest on capital will not be provided. Profit of 5,000 will be distributed to the partners on their capital ratio of 3 : 2
8.
| Particulars | Rajan | Devan | ||
|---|---|---|---|---|
| Rs. | Rs. | Rs. | Rs. | |
| Capital on 31st December 2018 | 1,00,000 | 80,000 | ||
| Add: Drawings | 20,000 | 10,000 | ||
| 1,20,000 | 90,000 | |||
| Less: Additional capital | 40,000 | 30,000 | ||
| Profit already credited* | 20,000 | 60,000 | 10,000 | 40,000 |
| [ Rajan (30,000 x 2/3) = 20,000 Devan (30,000 x 1/3) = 10,000] |
||||
| Capital as on 1st January 2018 | 60,000 | 50,000 | ||
(*Profit earned = Profit earned 70,000 - Balance profit as per balance sheet Rs. 40,000 = Rs. 30,000.
This amount is distributes in their profit sharing ration of 2 : 1.)
Calculation of interest on capital
Rajan:
On opening capital for 1 year = 60,000 \(\times\) \(\frac{6}{100}\) = Rs. 3600
On additional capital for 9 months = 40,000 \(\times\) \(\frac{6}{100}\) \(\times\) \(\frac{9}{12}\) = Rs. 1,8000
(April to December)
___________
Total Interest on capital = Rs. 5,400
____________
Devan:
On opening capital for 1 year = 50,000 \(\times\) \(\frac{6}{100}\) \(\times\) \(\frac{4}{12}\) = Rs. 600
(September to December)
___________
Total Interest on capital = Rs. 3,600
____________
9.
| Particulars | Subha Rs. | Sudha Rs. |
|---|---|---|
| Capital on 31st December 2018 | 40,000 | 60,000 |
| Add: Drawings | 8,000 | 10,000 |
| 48,000 | 70,000 | |
| Less: Profit already creditted | 12,000 | 18,000 |
| Capital on 1st January 2019 | 36,000 | 52,000 |
Calculation of interest on capital:
Subha:
On opening capital = 36,000 \(\times\) \(\frac{5}{100}\) = Rs. 1,800
Sudha:
On opening capital = 52,000 \(\times\) \(\frac{5}{100}\) = Rs. 2,600
10.
Calculation of Interest on capital:
Begum:
| On opening capital for 1 year | = 50,000 \(\times\) \(\frac{4}{100}\) | = Rs. 2,000 |
| On additional capital for 3 months (October to December) |
= 10,000 \(\times\) \(\frac{4}{100}\) \(\times\) \(\frac{3}{12}\) | = Rs. 100 |
| Interest on capital | = Rs. 2,100 |
Fathima:
| On opening capital for 1 year | = 40,000 \(\times\) \(\frac{4}{100}\) | = Rs. 1600 |
| On additional capital for 3 months (October to December) |
= 9,000 \(\times\) \(\frac{4}{100}\) \(\times\) \(\frac{8}{12}\) | = Rs. 240 |
| Interest on capital | = Rs. 1,840 |
11.
CaIulation of Interest on capital:
Interest on Prakash's capital:
| On opening capital for 1 year | = 3,00,000 \(\times\) \(\frac{6}{100}\) | = Rs. 18,000 |
| On additional capital for 9 months | = 60,000 \(\times\) \(\frac{6}{100}\times\frac{9}{12}\) = Rs. 2,700 | = Rs. 2,700 |
| Interest on capital | = Rs. 20,700 |
Interest on Supriya's captial:
| On opening capital for 1 year | = 2,00,000 \(\times\) \(\frac{6}{100}\) | = Rs. 12,000 |
| On additional for 9 months | = 30,000 \(\times\) \(\frac{6}{100}\times\frac{9}{12}\) | = Rs. 900 |
| Interest on capital | = Rs.12,900 |
| Date | Particulars | L.F | Debit Rs. | Credit Rs. |
|---|---|---|---|---|
| 2019 March 31 |
Interest on capital A/c Dr To Prakash's current A/c To Supriya's current A/c (Interest on capital provided) |
33,600 |
20,700 12,900 |
|
| 2019 March 31 |
Profit and loss appropriation A/c Dr To Interest on capital A/c (Interest on capital closed) |
33,600 |
33,600 |
12.
(1) Name of the firm and nature and place of business.
(2) Date of commencement and duration of business
(3) Names and addresses of all partners
(4) Capital contributed by each partner
(5) Profit sharing ratio
(6) Rate of interest to be allowed on capital
13.
Following are the essential features of partnership
(1) The balance being the profit or loss is transferred to the partner's capital or current account in the profit sharing ratio.
(2) There should be an agreement among the persons to share the profit or loss of the business.
(3) The agreement must be carryon a business and to share the profits of the business.
(4) The business may be carried on by all the partners or any of them acting for all.
14.
Calculation of commission:
Commission to Murali:
= Net profit before commission \(\times\) % of commission/100
= 1,10,000 \(\times\) \(\frac { 10 }{ 100 } \) = Rs. 11,000
Commission to Sethu:
Net profit after Murali’s commission = 1,10,000 –11,000 = Rs. 99,000
Sethu’s commission = Net profit after Murali’s commission \(\times\) % of commission/(100+%of commission)
= 99,000 \(\times\) \(\frac { 10 }{ (100+10) } \) = Rs. 9,000
15.
Salary to Samuel = 2,000 \(\times\) 12 = Rs. 24,000
Commission to Sudhahar = Rs. 6,000
| Date | Particulars | L.F. | Dr. Rs. |
Cr. Rs. |
|
|---|---|---|---|---|---|
| Samuel’s salary A/c | Dr. | 24,000 | |||
| To Samuel’s capital A/c (Samuel’s salary transferred to his capital account) |
24,000 | ||||
| Sudhahar’s commission A/c | Dr. | 6,000 | |||
| To Sudhahar’s capital A/c (Sudhahar’s commission transferred to his capital accoun |
6,000 | ||||
| Profit and loss appropriation A/c | Dr. | 30,000 | |||
| To Saumel’s salary A/c | 24,000 | ||||
| To Sudhahar’s commission A/c (Salary and commission account transferred) |
6,000 |
16.
17.
18.
Interest on drawings = Amount of drawings × Rate of interest × Period of interest
| Withdrawal on March 1 | Rs. 3,000 \(\times\) \( \frac { 12 }{ 100 } \times \frac { 10 }{ 12 }\) | Rs. 300 |
| Withdrawal on June 1 | Rs. 3,000 \(\times\) \( \frac { 12 }{ 100 } \times \frac { 7 }{ 12 }\) | Rs. 210 |
| Withdrawal on September 1 | Rs. 3,000 \(\times\) \( \frac { 12 }{ 100 } \times \frac { 4 }{ 12 }\) | Rs. 200 |
| Withdrawal on December 1 | Rs. 3,000 \(\times\) \( \frac { 12 }{ 100 } \times \frac { 1 }{ 12 }\) | Rs. 30 |
| Total interest on drawings | Rs. 660 |
19.
Interest on drawings = Amount of drawings x Rate of interest x Period of interest
| Withdrawal on March 1 | 6,000 \(\times\) \( \frac { 12 }{ 100 } \times \frac { 10 }{ 12 }\) | Rs. 600 |
| Withdrawal on June 1 | Rs.4,000 \(\times\) \( \frac { 12 }{ 100 } \times \frac { 7 }{ 12 }\) | Rs. 280 |
| Withdrawal on September 1 | Rs. 5,000 \(\times\) \( \frac { 12 }{ 100 } \times \frac { 4 }{ 12 }\) | Rs. 200 |
| Withdrawal on December 1 | Rs. 2,000 \(\times\) \( \frac { 12 }{ 100 } \times \frac { 1 }{ 12 }\) | Rs. 20 |
| Total interest on drawings | Rs. 1,100 |
20.
(i) Interest on capital will not be allowed as the partnership deed is silent as to the interest on capital.
(ii) Profit before interest on capital is Rs. 27,000.
Computation of interest on capital:
A: 4,00,000 \(\times\) \(\frac{3}{100}\) = Rs. 12,000
B: 2,00,000 \(\times\) \(\frac{3}{100}\) = Rs. 6,000
Since there is sufficient profit, interest on capital will be provided.
(iii) Profit before interest on capital is Rs. 27,000.
Computation of interest on capital:
A: 4,00,000 \(\times\) \(\frac{5}{100}\) = Rs. 20,000
B: 2,00,000 \(\times\) \(\frac{5}{100}\) = Rs. 10,000
Since the profit is insufficient, interest on capital will not be provided. Profit of Rs. 27,000 will be distributed to the partners in their capital ratio of 2:1.
21.
| Particulars | Brindha | Praveena | ||
|---|---|---|---|---|
| Rs. | Rs. | Rs. | Rs. | |
| Capital on 31st December 20 | 30,000 | 40,000 | ||
| Add: Drawings | 5,000 | 7,000 | ||
| 35,000 | 47,000 | |||
| Less: | ||||
| Additional capital | 6,000 | 10,000 | ||
| Profit already credited* | 9,000 | 15,000 | 12,000 | 22,000 |
| Capital on 1st January | 20,000 | 25,000 | ||
Profit credited = Profit earned Rs. 31,000 – Balance profit as per balance sheet Rs. 10,000 = Rs. 21,000. This amount is distributed in their profit sharing ratio of 3:4.
Calculation of interest on capital:
Brindha:
| On opening capital for 1 year | 20,000 \(\times\) \(\frac{6}{100}\) | Rs. 1,200 |
| On additional capital for 6 months | 6,000 \(\times\) \(\frac{6}{100}\) \(\times\) \(\frac{6}{12}\) | Rs. 180 |
| Total Interest on capital | Rs. 1,380 |
Praveena:
| On opening capital for 1 year | 25,000 \(\times\) \(\frac{6}{100}\) | Rs. 1,500 |
| On additional capital for 3 months | 10,000 \(\times\) \(\frac{6}{100}\) \(\times\) \(\frac{3}{12}\) | Rs. 150 |
| Total interest on capital | Rs. 1.650 |
22.
| Particulars | Subha Rs. |
Sudha Rs. |
|---|---|---|
| Capital on 31st December 2017 | 15,000 | 20,000 |
| Add: Drawings | 2,500 | 3,500 |
| 17,500 | 23,500 | |
| Less: Profit already credited | 7,500 | 7,500 |
| Capital on 1st January 2017 | 10,000 | 16,000 |
Calculation of interest on capital:
Subha:
On opening capital = 10,00 \(\times\) \(\frac{6}{100}\) = Rs. 600
Sudha:
On opening capital = 16,000 \(\times\) \(\frac{6}{100}\) = Rs. 960
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