If A withdraw Rs 10,000 from business for personal use, he has to pay an interest because if this money remains in business it will pay the owner some profit. This interest is known as _______

Interest on capital

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Interest on drawings

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Opportunity cost interest

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Bank interest

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Solution

The correct option is B
Interest on drawings

This interest is known as interest on drawings.

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The amount which the owner withdraw from business for personal use is known as ______

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