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If A and B's correct profit-sharing ratio is 1:1 but the entire profit was credited to A, whose account will be debited?

Answer and explanation

Correct answer: A's account

Since the entire profit was credited to A, A has received B's share as well — A is over-credited. To correct this, the excess must be reversed: debit A's account and credit B's account so the 1:1 ratio is restored. The closest distractor (both accounts) is incorrect because only A was over-credited, not both. Exam tip: rectify wrong distribution by debiting the partner who received excess and crediting the partner entitled to that share.

Related tags

Partnership AccountsAdjustmentsProfit DistributionExcess ProfitPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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