Adjustments

For quarterly drawings made in the middle the average period is taken as six months. Interest is charged on total drawings ₹60000 for six months.

The amounts carry interest for twelve eight and four months respectively. By product method total interest is ₹3150.

Recording the omitted salary reduces divisible profit by ₹24,000, and this reduction is shared in the existing profit-sharing ratio of 3:2. B’s share is 2/5, so B’s debit is ₹24,000 × 2/5 = ₹9,600. ₹14,400 is the reduction in A’s profit share; after receiving the salary, A’s net adjustment is a credit of ₹24,000 − ₹14,400 = ₹9,600. Exam tip: For an omitted partner’s salary, first distribute the reduction in profit in the old profit-sharing ratio.

Interest must be recovered from B but increased profit would give B back three fourth. Net burden on B is ₹2000.

Interest due is A ₹14000 and B ₹21000. After charging the total in profit ratio A receives a net ₹4000.

C's normal share is ₹40000 and deficiency is ₹10000. A bears this deficiency out of his normal ₹100000 share.

C's normal share is ₹20000 and deficiency is ₹10000. A and B bear it equally so B's share falls from ₹80000 to ₹75000.

Under a silent deed partner's loan carries 6% interest per annum. For three months the interest is ₹3000.

Interest on loan given by the firm to a partner is charged only if the deed provides it. Keep it separate from partner's loan to the firm.

Interest due is A ₹24000 and B ₹16000. When profit is insufficient available ₹36000 is divided in that ratio.

The priority salary of ₹50000 is allowed first. Only remaining profit ₹30000 is available for interest on capital.

This is a commission-after-charging calculation. When commission is based on profit after charging the commission itself, the commission is not calculated simply as 12% of the profit before commission. The correct formula is: commission = profit before commission × rate/(100 + rate). Thus, commission = ₹1,12,000 × 12/112 = ₹12,000. The remaining profit after commission is ₹1,00,000, and 12% of that amount is indeed ₹12,000, confirming the answer. Option B incorrectly applies 12% directly to ₹1,12,000; the other figures also use an incorrect base or rate.

When commission is directly on net profit apply the rate directly. Seven percent of ₹250000 is ₹17500.

B's commission is ₹15000 and the remaining profit is ₹135000. A gets seven tenths of the balance which is ₹94500.

Credits are ₹12000 plus ₹30000 equal to ₹42000 and debit is ₹38000. The balance remains credit ₹4000.

Credit adjustments are ₹80000 and debit adjustments are ₹75000. Capital increases by ₹5000 to ₹255000.

A's omitted interest gives a net benefit of ₹5000 and removing B's excess salary gives A another ₹3000. Total correction is ₹8000 in A's favour.

The charge of salary is already correct but the credit went to the wrong person. So the whole amount is transferred from A to B.

Interest is recoverable from A and removing the expense increases profit by ₹4000. Net debit to A is ₹6500 and credit to B is ₹2500.

Because profit was already distributed, the omitted salary must be corrected through a past adjustment among the partners. C should receive the omitted salary of ₹24,000, and this amount is borne by A, B and C in their existing profit-sharing ratio of 3:2:1. The total ratio is 6 parts, so A’s share of the adjustment is ₹24,000 × 3/6 = ₹12,000. A’s account is debited because A has received too much profit in the original distribution; the amount is credited through the adjustment to compensate C. Option A is correct. ₹8,000 is B’s share, ₹4,000 is C’s share, and ₹24,000 is the total omitted salary.

Commission is payable to C but C bears half of its burden through profit ratio. So net credit is ₹10000.

When no separate loss ratio is given losses are shared in the profit ratio. Do not apply capital ratio automatically.

Direct answer: Option A, interest on partner’s loan. The Profit and Loss Account records expenses incurred to find the firm’s net profit. The Profit and Loss Appropriation Account shows how that already-earned profit is distributed or appropriated among partners. Interest on a partner’s loan is paid because the partner has lent money to the firm; it is treated as an expense before net profit is determined. Step 1: calculate profit after charging loan interest. Step 2: transfer the resulting profit to the appropriation account. Option A is correct because loan interest is a charge against profit. Option B, salary to partner, is normally an appropriation when it is paid for the partner’s services under the deed. Option C, interest on capital, is normally an appropriation of profit. Option D, commission to partner, is also normally dealt with as an appropriation. The classification can depend on specific legal or deed conditions, but under the standard Class 12 partnership treatment, A is the intended answer. Memory cue: loan interest comes before appropriation; partner salary, commission and capital interest usually come after profit is found.

Interest on drawings is payable by the partner to the firm. Therefore it is debited to the concerned partner's account.

Interest on capital is a return allowed to the partner for the capital invested in the firm. It is an expense or appropriation for the firm and an amount due to the partner. Therefore, when the partner’s capital or current account is prepared, interest on capital is entered on its credit side, increasing the amount credited to that partner.

Drawings reduce the partner’s claim and are debited. Interest on drawings is charged to the partner and is also debited to the partner’s account. A personal expense paid by the firm is likewise treated as a drawing and reduces the partner’s account. Thus only interest on capital matches the description in the question, so option A is correct. The direction of the entry follows whether the item benefits or reduces the partner’s account.