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If interest on drawings was omitted and profit was shared equally what happens in correction?

Answer and explanation

Correct answer: Concerned partner is debited and partners are credited in profit ratio

Interest on drawings is recovered from concerned partner. Then it is treated like profit and credited to partners in ratio.

Related tags

Interest On DrawingsAdjustmentProfit RatioAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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