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If A's account was wrongly debited instead of being credited, what will be the overall difference from the correct position?

Answer and explanation

Correct answer: Double the amount

Let the erroneous amount be ₹X. If recorded correctly A would be credited by +₹X; but by mistake it is debited by +₹X. To get from the wrong position to the correct one you must remove the wrong debit (₹X) and then record the correct credit (₹X) — total difference = ₹X + ₹X = 2₹X. Hence the change is double the amount. The closest distractor (Equal to the amount) is wrong because it counts only one side of the mistake and ignores the opposite-side entry. Exam tip: when an entry is on the wrong side, add the amount needed to cancel the wrong entry and the amount needed to make the correct entry.

Related tags

Partnership AccountsAdjustmentsAccounting ErrorsTrial BalancePartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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