Adjustments

Interest on drawings should have been debited to partner account. Omitting it makes partners claim higher by Rs 900.

Partner salary is an appropriation of profit. It is debited in the profit and loss appropriation account before the remaining profit is divided among the partners. Recording the salary reduces the balance available for further distribution. If the salary is omitted, that reduction is not made, so the remaining profit is shown as higher than it should be.

The omitted amount is ₹11,000, so the reported remaining profit is overstated by exactly ₹11,000, assuming there is no other error. It is not understated because the missing debit has failed to reduce the balance. It is also not overstated by ₹22,000, since there is only one omitted salary amount. Therefore, option A correctly describes the effect of the omission.

Reserve is deducted from profit. Omitting it makes profit distributed among partners Rs 5000 higher.

Debiting a credit item gives double reverse effect. Therefore distributable profit is understated by Rs 4000.

Interest on capital is an appropriation of profit. In the appropriation account, it should be entered on the debit side because it reduces the profit left for distribution among partners. If an amount of Rs 3000 is wrongly entered on the credit side, the account is affected in two ways: the proper debit reduction of Rs 3000 is missing, and an incorrect credit increase of Rs 3000 is added.

Therefore, the remaining profit becomes higher than it should be by Rs 3000 + Rs 3000 = Rs 6000. Thus, the remaining profit is overstated by Rs 6000, so option A is correct. The error is not merely Rs 3000 because both the omitted debit and the wrong credit must be considered.

Amount deposited back reduces drawings. Therefore net drawings are Rs 20000 minus Rs 5000 equal to Rs 15000.

Personal income tax is a partner's personal liability, not a firm expense. When the firm pays a partner's personal expense, it is treated as that partner's drawings — i.e., Debit Drawings A/c and Credit Bank/Cash. Option B is wrong because it treats the payment as a business expense; option C is incorrect because the Profit & Loss Appropriation Account deals with profit distribution, not personal liabilities; option D is incorrect in sign and treatment. Exam tip: Always record payments of a partner's personal expenses by the firm as drawings (Debit Drawings, Credit Bank).

Machine becomes an asset of the firm and partners capital increases. Therefore partners capital account is credited.

Return of capital should be debited to capital account. Treating it as drawings wrongly debits current account under fixed method.

Profit share is credited and loss adjustment is debited. Net effect is Rs 24000 minus Rs 6000 equal to Rs 18000 credit.

Partner bonus is an appropriation of profit. Therefore appropriation account is debited and partner account is credited.

If the firm pays a penalty that is recoverable from a partner, the normal practice is to first record the penalty (Penalty A/c Dr. To Cash). Since it is recoverable, the expense is transferred to the partner by debiting the partner’s current account (Partner’s Current A/c Dr. To Penalty A/c). So the partner’s account is debited because he owes the firm. Closest distractor (crediting the partner) is wrong — credit would increase the partner’s claim, not show his liability. Exam tip: remember the two-step entry — record the expense, then transfer it to the partner’s account when it is recoverable.

A ratio tells us how many equal parts of the total loss each partner bears. The given ratio is A:B:C = 2:1:3, so the total number of ratio parts is 2 + 1 + 3 = 6. Partner C has 3 of these 6 parts. Therefore, C bears one-half of the remaining loss. This is a direct ratio-sharing calculation.

The remaining loss is Rs 36,000. One ratio part is Rs 36,000 ÷ 6 = Rs 6,000. C’s share is 3 parts, so C’s loss = 3 × Rs 6,000 = Rs 18,000. Equivalently, C receives 3/6 of Rs 36,000, which is Rs 18,000. Thus option A is correct. Rs 12,000 would represent only two parts, not C’s three parts.

Direct answer: Option A, it decreases the remaining profit. In partnership accounting, interest on capital is an appropriation of profit, not an ordinary business expense. First, the firm calculates profit. Then interest on capital is allowed to partners and entered on the debit side of the Profit and Loss Appropriation Account. Because a debit reduces the amount left in that account, the remaining distributable profit falls. Option A is correct because the interest is deducted before the balance is shared. Option B is wrong because a debit does not increase the balance. Option C is wrong because the entry has a definite effect on remaining profit. Option D is wrong because interest on capital is not drawings; drawings are amounts withdrawn by partners. Remember: debit appropriations such as interest on capital reduce the profit left for distribution.

Every adjustment has double effect. Matching correct debit credit and ratio of remaining profit reduces errors.

Direct answer: Option A, credit Rs 15,000 to A’s account. The advertisement was a cost of the firm, but A paid it personally. Therefore the firm received the benefit while A used his own money. This creates a liability of the firm to A. To record that liability, A’s capital or current account is credited with Rs 15,000. Option A is correct because a credit records the amount owed to the partner. Option B is wrong because debiting A would suggest that A owes the firm or has received a benefit from it, which is not the situation. Option C is wrong because the expense is a business expense, not an appropriation of profit. Option D is wrong because A did not withdraw money; he paid money for the firm. Thus the adjustment gives A credit and records the firm’s expense separately.

A partner's personal expense paid by the firm is treated as a drawing, not a firm business expense. Drawings are recorded by debiting the partner's account (reducing capital). Option B is incorrect because crediting B's account would increase capital, which is not appropriate for a personal withdrawal. Option C is wrong because personal expenses are not charged to the firm's expense accounts. Option D is incorrect since reserves are not used to record individual partner drawings. Exam tip: Always treat payments of a partner's personal expenses by the firm as drawings — debit the partner's account.

Direct answer: Option A, Rs 10,800. Interest on capital is calculated by multiplying capital by the given rate: \\(90,000 \\times \\frac{12}{100}=10,800\\). Thus the interest allowed to A is Rs 10,800, assuming the stated capital and rate apply for the full relevant period and no partnership-agreement restriction is intended. Option A is correct because it is exactly twelve percent of Rs 90,000. Option B, Rs 9,000, equals ten percent of the capital, not twelve percent. Option C, Rs 12,000, would be higher than the required calculation and does not equal twelve percent of Rs 90,000. Option D, Rs 7,800, is also not the result of the stated rate. Always convert the percentage to \\(12/100\\), multiply by capital, and check the units are rupees.

Drawing at the beginning of April is taken for the full year. Ten percent of Rs 30000 is Rs 3000.

From end of September to end of March about five months are counted. Interest on Rs 24000 at twelve percent for five months is Rs 1200.

Under fluctuating capital method all partner adjustments are recorded in capital account. Salary is payable to partner so capital account is credited.

Both the commission and the bonus are payable to partner A and therefore are credited to A's account. Total credit = Rs 7,000 (commission) + Rs 5,500 (bonus) = Rs 12,500. Options B and C list only one item each (only commission or only bonus) so they are incorrect; option D is an unrelated difference. Exam tip: Always add up all items specifically payable to the partner and confirm whether they are to be credited to the partner's current/capital account or charged to Profit & Loss Appropriation Account.

Drawings and interest on drawings are recoverable from the partner. Total debit is Rs 30000 plus Rs 2100 equal to Rs 32100.

Partner bonus is allowed only when clearly provided in the deed. If deed is silent it is not deducted from profit.

Interest on capital is normally an appropriation of profit, not an ordinary business expense. It can be allowed only out of the profit available for appropriation. When the available profit is Rs 18000 but the total interest claim is Rs 24000, the firm cannot distribute more than Rs 18000 as interest under the usual school-level rule.

Thus, the amount generally allowed is Rs 18000, which is option A. The remaining Rs 6000 is not paid because sufficient profit is unavailable. This conclusion assumes that the question refers to a single claim or to the usual proportionate-limit rule in which the available profit is the maximum distributable amount. The answer does not mean that the deed’s full claim disappears in every possible partnership arrangement.