Adjustments

Correct answer: A. (₹50000)

The direct answer is option A: B's corrected profit is ₹50000. First deduct A's omitted salary of ₹24000 from total profit ₹144000. The remaining profit is ₹144000 − ₹24000 = ₹120000. This residual profit is divided between A and B in the ratio 7:5, whose total parts are 12. B receives 5/12 of ₹120000, so \\(120000 \\times \\frac{5}{12}=₹50000\\). Option A is correct. Option B would incorrectly use half or another unsupported division. Option C is too high and ignores the stated ratio. Option D does not result from the 7:5 division. The salary is an appropriation payable to A before sharing the remaining profit; it is not shared as ordinary profit. Memory cue: pay the partner salary first, then divide the balance.

Correct answer: A. (₹1350)

Direct answer: Option A, ₹1,350. Total annual drawings are ₹36,000, made equally in four instalments, so each quarter-end withdrawal is ₹36,000/4=₹9,000. At the ends of the first, second, third, and fourth quarters, the money remains withdrawn for 9, 6, 3, and 0 months respectively. Total product of amounts and time is ₹9,000(9+6+3+0)=₹1,62,000 month-rupees. Interest is 10% per year, so ₹1,62,000×10%/12=₹1,350. Equivalently, average period is 18/4=4.5 months and ₹36,000×10%×4.5/12=₹1,350. Option A is correct. Option B uses six months as the average, option C uses a longer period, and option D uses a shorter period. The final withdrawal has zero time, a common mistake. Memory cue: for equal quarter-end drawings, average period is 4.5 months.

Correct answer: A. (₹2250)

For drawings at the beginning of each quarter average period is (7.5) months. Interest is (48000\times7.5%\times\frac{7.5}{12}=₹2250).

Correct answer: A. ₹12,000

Interest on drawings is income for the firm, so it increases the profit available for appropriation. Total increase = ₹9,000 + ₹3,000 = ₹12,000. The 2:1 ratio affects only the distribution of profit, not the total increase. Exam tip: Add the interest on drawings of all partners; do not apply the profit-sharing ratio to calculate this increase.

Correct answer: A. It will not be allowed

Interest on a partner’s capital is not an automatic right under the ordinary rules of partnership accounting. It is allowed only when the partnership deed provides for it, or when the partners have a valid agreement to that effect. The deed therefore controls this adjustment. A fixed rate such as 6% is not applied merely because the question involves capital.

When the deed is silent, there is no agreed basis for calculating or recording interest on capital. Consequently, no interest on capital is allowed or credited. The fact that the business may earn a profit does not change this rule. Therefore option A is correct. The bank rate and profit-sharing ratio are not default rules for interest on capital, so options C and D do not follow in the absence of an agreement.

Correct answer: A. (₹9000) from B to A

Wrong shares are A (₹36000) and B (₹45000). Correct shares are A (₹45000) and B (₹36000), so B transfers (₹9000) to A.

Correct answer: A. (₹5000) from B to A

Wrong shares are (₹25000) and (₹25000). Correct shares are (₹30000) and (₹20000), so B transfers (₹5000) to A.

Correct answer: A. Profit and Loss Adjustment A/c will be debited and A’s Capital/Current A/c will be credited

Because the expense was omitted after profit had already been determined, it is debited to the Profit and Loss Adjustment Account rather than the regular Profit and Loss Account. This reduces profit. Since Partner A paid from personal funds, the firm owes A, so A’s Capital or Current Account is credited. Options B and D incorrectly affect the firm’s Bank Account, although the payment was made from A’s personal bank account. Exam tip: An expense paid personally by a partner credits that partner’s account.

Correct answer: A. (₹15000)

Total claim is (₹75000) and available profit is (₹45000). B receives (25000\times\frac{45000}{75000}=₹15000).

Correct answer: A. ₹36,000

Total credits are ₹90,000 + ₹6,000 = ₹96,000, while total debits are ₹36,000 + ₹24,000 = ₹60,000. Therefore, the residual profit available for distribution is ₹96,000 − ₹60,000 = ₹36,000. Interest on drawings is credited to the appropriation account and increases the amount available for distribution. Exam tip: Add both sides separately and find the difference between total credit and total debit.

Correct answer: A. (₹75000)

A's residual profit share is (46000-10000-6000=₹30000). This is (2/5), so total residual profit is (30000\times\frac{5}{2}=₹75000).

Correct answer: A. (₹175000)

Loan interest is an expense and drawings interest is income of the firm. Profit available for appropriation is (180000-9000+4000=₹175000).

Correct answer: A. (₹8000)

After salary only (₹24000) remains. Interest on capital is reduced in (24000:12000=2:1), so B gets (₹8000).

Correct answer: A. (₹2250)

Beginning monthly drawings use (6.5) months and end monthly drawings use (5.5) months. Interest is (30000\times12%\times\frac{6.5}{12}+18000\times12%\times\frac{5.5}{12}=₹2250).

Correct answer: A. ₹80,000

Since the commission is calculated on profit after charging the commission, let the remaining profit be ₹x. Then commission = 20% of x, so the total profit before commission is x + 0.20x = 1.20x. Therefore, 1.20x = ₹96,000 and x = ₹96,000 × 100/120 = ₹80,000. ₹76,800 would result from calculating 20% on the profit before commission, so it is incorrect. Exam tip: For commission after charging, remaining profit = profit before commission × 100/(100 + commission rate).

Correct answer: A. (₹9000)

C's normal share is (₹25000), so deficiency is (₹15000). A and B bear it in (3:2), so A's share is (₹9000).

Correct answer: A. (₹3000)

When the deed is silent loan interest is (6%) per annum and the period is (5) months. Interest is (120000\times6%\times\frac{5}{12}=₹3000).

Correct answer: A. (₹28500)

Interest is (300000\times9%+60000\times9%\times\frac{10}{12}-90000\times9%\times\frac{4}{12}=₹28800). Since no option matches, the question should be checked for option error.

Correct answer: A. (₹3000) credit

Credits total (₹40000) and drawings debit is (₹50000), giving net (₹10000) debit. Closing debit is (₹7000), so opening balance was (₹3000) credit.

Correct answer: A. (₹16000) from B to A

Correct shares are A (₹40000) and B (₹24000), while wrong shares were A (₹24000) and B (₹40000). So (₹16000) is transferred from B to A.

Correct answer: A. Debit A and credit B (₹12000)

Interest on drawings should have been recovered from A but was charged to B. Therefore debit A and credit B.

Correct answer: A. (₹50000)

Goods withdrawn for personal use are deducted from purchases at cost. It is not treated as sale with profit unless the question says so.

Correct answer: A. No final effect

First the partner is credited and on reimbursement debited. Both effects cancel, leaving no final effect on capital.

Correct answer: A. ₹12,100

A's commission is calculated directly on the profit before commission: \(₹1,21,000 \times 10\% = ₹12,100\). B's commission is based on the profit after commission and does not affect the amount of A's commission in this question. Exam tip: When commission is stated to be on profit before commission, apply the given percentage directly to that profit.

Correct answer: A. (₹140000)

B's normal share is (₹40000) but guarantee is (30%), that is (₹60000). Deficiency (₹20000) reduces A's share, so A gets (₹140000).