If share of profit was wrongly distributed in old ratio how will it be corrected?

Correct answer: By comparing with correct new ratio

When profit has been distributed using an old ratio instead of the correct new ratio, the first step is to determine what each partner should receive under the new ratio. The amount already credited under the old ratio is then compared with this correct amount. This comparison identifies who received too much and who received too little.

The difference between the old-ratio share and the new-ratio share becomes the basis of the adjustment entry. A partner who received excess is debited, while a partner who received less is credited. Therefore option A is correct. Bank balance, purchases, or cash sales do not reveal the partner-wise ratio difference and are unrelated to this correction.