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

Correct answer: It will be credited

Let total profit = P. With a 1:1 ratio, A and B should each receive P/2. If the whole P is credited to A, B has been deprived of his share. To rectify, B's account must be credited by his share (P/2) and A's account debited by that amount. Hence B's account will be credited. The nearest distractor 'debited' is wrong because B is owed money (not liable); 'no effect' and 'closed' are also incorrect. Exam tip: Compute the correct shares first; then pass the adjustment entry — Debit the partner who received excess, Credit the partner who was deprived (amount = excess).