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If an omitted expense is Rs. 8,000 and A and B share profits equally, how much will be debited to B?

Answer and explanation

Correct answer: Four thousand rupees

An omitted expense reduces firm profit and must be borne by partners in their profit‑sharing ratio. With A and B sharing equally (1:1), B’s share = half of Rs. 8,000 = Rs. 4,000. Option B (Rs. 8,000) is the total expense, not B’s share; option C (Rs. 2,000) assumes a wrong ratio and D (Rs. 0) ignores the adjustment. Exam tip: always apportion omitted expenses to partners’ capital/current accounts in the profit‑sharing ratio when preparing adjustments.

Related tags

Omitted ExpenseEqual RatioNumericalPartnership AccountsAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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