Adjustments

Interest due is A ₹10000 and B ₹20000. After charging the burden in profit ratio B receives a net ₹2000.

C's normal share is ₹30000 so A bears the deficiency of ₹6000. A's normal share ₹60000 reduces to ₹54000.

B's normal share is ₹40000 which is more than the guarantee. So there is no deficiency and C should get normal ₹20000.

B's normal share is ₹24000 and the deficiency is ₹6000. C bears half of it ₹3000 so his share becomes ₹9000.

The direct answer is option A: interest on drawings will not be charged. Interest on drawings is not an automatic partnership rule. It can be recorded only when the partnership deed clearly provides for it, or when all partners agree to it. Here, the deed speaks about profit sharing but says nothing about drawings interest. Therefore there is no authority to charge it. Option A is correct because silence means no interest is recorded. Option B is wrong because 6% is not imposed automatically; it must be stated. Option C is wrong because interest is not calculated in the capital ratio. Option D is wrong because the issue is not whether it is charged before or after profit; it is whether it is authorised at all. Memory cue: a silent deed cannot create interest on drawings by itself.

Under a silent deed partner's loan earns interest at 6% per annum. From 1 July interest is for nine months.

Interest on partner's loan is an expense before determining profit. It is not an appropriation item but a Profit and Loss Account item.

Under fixed capital method routine appropriations are recorded in the current account. The capital account is not changed frequently.

In fluctuating capital method both drawings and interest on drawings are debited to the capital account. Their total is ₹32400.

When profit is insufficient and no priority is given claims are reduced in the ratio due. Total payment cannot exceed profit ₹50000.

The direct answer is option A: B will be allowed ₹12000. The stated interest amounts are ₹24000 for A and ₹16000 for B, so the total intended interest is ₹40000. However, the available profit is only ₹30000. Since there is no other appropriation, the available amount is distributed in the ratio of the amounts due: A:B = 24000:16000 = 3:2. B's share is therefore ₹30000 × 2/5 = ₹12000, equivalently \\(30000 \\times \\frac{16000}{40000}=12000\\). Option A is correct. Option B wrongly gives B the full amount despite insufficient profit. Option C divides profit equally, although the due amounts are unequal. Option D uses an unsupported figure and does not follow the ratio. Exam cue: when profit is insufficient for appropriations, distribute it proportionately unless the applicable rule says otherwise.

The direct answer is option A: debit A ₹3000 and credit B ₹3000. Interest on A's drawings should increase A's debit or charge, and the firm should receive the interest income. It was mistakenly charged to B, so the income itself is already recorded correctly; only the partner charged is wrong. To move the charge from B to A, debit A by ₹3000 and credit B by ₹3000. Option A makes A bear the correct charge and removes it from B. Option B is wrong because the full amount, not half, was wrongly posted to B. Option C reverses the error and would charge B again. Option D is wrong because B's account still contains an incorrect debit. The fact that accounts are closed means a rectification entry is needed, not that correction is impossible.

The salary charge is assumed correct but credited to the wrong partner. So the whole amount is transferred from A to B.

Add interest on drawings on the credit side and deduct interest on capital and salary. Residual is ₹180000 plus ₹6000 minus ₹54000.

When commission is on profit and not on profit after commission apply the rate directly. Ten percent of ₹90000 is ₹9000.

Commission (=84000 \times \frac{5}{105}). For commission on profit after commission the denominator is 100 plus the rate.

Opening debit and drawings total ₹35000 while credit is ₹22000. The balance remains debit ₹13000.

Even under fixed capital method an actual change in capital is recorded in the capital account. Routine appropriations go to the current account.

B's normal share is ₹15000 and deficiency is ₹10000. A's normal share ₹60000 reduces to ₹50000.

Personal insurance premium is a partner's personal expense. When paid by the firm it is treated as drawings.

A's interest and B's drawings interest together create a net correction in A's favour. After profit ratio adjustment the net amount is ₹8000.

Salary is payable to A but its burden falls in profit ratio. A bears ₹7000 himself so the net credit is ₹14000.

Removing excess interest increases profit by ₹10000 and B gets back two fifth through profit share. Net burden on B is ₹6000.

Partner's commission is generally an appropriation of profit. It is shown after net profit in the appropriation account.

Partner's salary is an appropriation of profit so it appears on the debit side. Interest on drawings appears on the credit side.