A firm expense was wrongly debited to a partner’s account. What is the correct correction?

Correct answer: Credit the partner’s account

The governing concept is rectification of an expense posted to the wrong account. A genuine firm expense belongs to the firm and should be recorded in the appropriate expense account or in the firm’s Profit and Loss Account. It should not be charged to a partner personally unless the facts specifically make that partner liable. Since the partner’s account was wrongly debited, the erroneous debit must be reversed by crediting the partner’s account for the same amount. The expense can then be recorded in its proper firm account if required. Thus option A is correct. Debiting the partner again increases the error, while closing the account or increasing capital does not correct the wrong entry.