Adjustments

Interest on drawings is added and salary is deducted. Rs 130000 plus Rs 6000 minus Rs 36000 equals Rs 100000.

Interest on capital and reserve are both deducted from profit. Rs 150000 minus Rs 60000 equals Rs 90000.

Total parts = 1 + 2 + 3 = 6. B's share = 2 parts out of 6, so B gets (2/6) × Rs 90,000 = (1/3) × Rs 90,000 = Rs 30,000. The closest distractor (C) would correspond to 3/6 = 1/2 of the amount (Rs 45,000), which is incorrect for B. Exam tip: always compute total parts first and then multiply the required fractional part by the total profit.

Goods taken by a partner for personal use are treated as drawings. The journal entry would be: Drawings A/c Dr. ₹9,500; Purchases/Stock A/c Cr. ₹9,500 (credit Stock if taken from inventory or Purchases if adjusting purchases). Crediting capital is incorrect because this is a withdrawal of firm assets, not a contribution to capital. Debiting Sales is wrong since no sale occurred. Adding to salary is irrelevant. Exam tip: Record partner withdrawals by debiting Drawings and crediting Purchases or Stock as appropriate.

B paid a firm expense from personal cash, so the firm now owes B. The correct journal treatment is to debit the repair expense and credit B's account (showing the firm's liability to B). Option B is wrong because debiting B's account would indicate a reduction in the firm's liability to B; here liability increases (credit). Option C is incorrect because this was not a personal withdrawal but a firm expense paid by the partner. Exam tip: if a partner pays a firm expense personally, always credit the partner's account and debit the relevant expense or asset account.

A received Rs 60000 under equal sharing. Correct share is Rs 90000 so A should receive Rs 30000 more.

B received Rs 50000 under equal sharing. Correct share was Rs 20000 so B received Rs 30000 excess.

Deficiency is the difference between minimum profit and normal share. Rs 42000 minus Rs 35000 equals Rs 7000.

Bs normal share is two fifths which is Rs 44000. Guarantee is Rs 50000 so deficiency is Rs 6000.

Interest on a loan given by a partner is a charge against the firm’s profit. Unlike interest on capital, it is normally treated as an expense before arriving at net profit, because the firm has borrowed and must pay for the use of that loan. It is not a distribution of the residual profit among partners.

If ₹9,000 interest was accidentally left out, the reported net profit is overstated by ₹9,000. The correction is to reduce the net profit by ₹9,000, or record the omitted expense in the appropriate accounts. Adding it would increase the existing error. It should not be credited to the appropriation account or added to drawings. Therefore, option A correctly states the required adjustment.

Under the usual partnership-accounting treatment, interest on capital is an appropriation of divisible profit, unless the agreement specifically provides otherwise. It is recorded after calculating net profit in the Profit and Loss Appropriation Account, not as an operating expense in the Profit and Loss Account. Charging it as an expense reduces net profit before appropriation and therefore gives an incorrect figure for profit available for distribution. Thus an appropriation has been wrongly treated as an expense. Option B reverses the error, while options C and D describe unrelated accounting mistakes. Therefore option A is correct.

Average period for monthly middle drawings is six months. Interest on Rs 48000 at nine percent for six months is Rs 2160.

For quarterly drawings at the beginning average period is seven and half months. Interest on Rs 24000 at eight percent is Rs 1200.

Interest is on Rs 60000 for full year and Rs 30000 for nine months. Total interest is Rs 6000 plus Rs 2250 equal to Rs 8250.

Interest is on Rs 100000 for nine months and Rs 60000 for three months. Total is Rs 9000 plus Rs 1800 equal to Rs 10800.

Total credits = salary = Rs 14,000. Total debits = opening debit Rs 6,000 + drawings Rs 5,000 = Rs 11,000. Net = Rs 14,000 − Rs 11,000 = Rs 3,000 credit. Thus the closing balance is Rs 3,000 credit. The closest distractor (option C: Rs 3,000 debit) gives the correct magnitude but wrong sign. Option D ignores the opening balance and drawings. Exam tip: always sum all debits and all credits separately, then compute the difference and state the correct sign (credit or debit).

The governing concept is the treatment of items in a partner’s Current Account. A credit balance brought forward is a credit, and commission allowed to the partner is also credited because it increases the amount due to the partner. Interest on drawings is different: it is charged to the partner, so it is debited to the partner’s account. The total credits before this charge are Rs 8,000 + Rs 7,000 = Rs 15,000. Subtracting the debit of Rs 2,500 gives Rs 15,000 − Rs 2,500 = Rs 12,500. The balance remains credit because credits exceed debits. Option B ignores interest, option D shows only total credits, and option C has the wrong side and amount. Therefore, option A is correct.

Profit and salary are added and drawings are deducted. Rs 110000 plus Rs 42000 minus Rs 26000 equals Rs 126000.

Profit share should have been credited but was debited. The difference between correct and wrong balance is double which is Rs 32000.

The governing concept is rectification of a reversed debit-credit entry. Interest on drawings is normally debited to the partner’s account because the partner bears this charge, while the firm recognises corresponding income. The correct treatment would therefore reduce the partner’s balance by Rs 1,500. Instead, a credit of Rs 1,500 was recorded, which increases the balance by Rs 1,500. Comparing the incorrect credit with the required debit, the total difference is Rs 1,500 + Rs 1,500 = Rs 3,000. Thus the partner’s account is overstated by Rs 3,000. Option B counts only the wrong credit, option C gives the wrong direction, and option D ignores the error. Hence option A is correct.

Interest on capital is a credit item payable to partner. Omitting it makes partners balance understated by Rs 12000.

Partner commission is an appropriation (a debit against profit) that reduces the remaining profit available for distribution. Omitting the Rs 9,000 commission means profit was not reduced, so the remaining profit is overstated by Rs 9,000. Option C (Rs 18,000) is incorrect because the commission is not doubled; B and D are incorrect for the reasons stated. Exam tip: When you find an omission, identify whether the item is an appropriation or an expense—omit an appropriation and the remaining profit will be overstated by that amount.

Reserve should have been deducted from profit. Omitting it makes profit distributed to partners Rs 12000 higher.

Debiting a credit item gives double reverse effect. Therefore distributable profit is understated by Rs 10000.

Partner salary is an appropriation of profit, not an ordinary operating expense. It should be debited to the Profit and Loss Appropriation Account, thereby reducing the profit left for distribution among partners. A correct debit of Rs 8,000 would reduce remaining profit by Rs 8,000. However, the amount was credited instead, so remaining profit was increased by Rs 8,000. The difference between the proper debit and the incorrect credit is therefore Rs 8,000 + Rs 8,000 = Rs 16,000. The remaining profit is consequently overstated by Rs 16,000. Option B considers only the effect of the wrong credit, option C reverses the direction, and option D ignores the error. Therefore, option A is correct.