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If omitted income is nine thousand rupees and A B C share profits equally how much will each be credited?

Answer and explanation

Correct answer: Three thousand rupees

The direct answer is option A, Rs 3,000 for each partner. Omitted income means income that was earned but was accidentally left out of the books. When it is found, total profit increases by Rs 9,000. A, B and C share profit equally, so the extra profit must be divided into three equal parts: Rs 9,000 ÷ 3 = Rs 3,000. Each partner’s account is therefore credited with Rs 3,000. Option A is correct. Option B, Rs 9,000, gives the whole omitted amount to each person instead of dividing it. Option C, Rs 6,000, is not one of three equal shares; it could suggest a two-person division, which is not the case. Option D, Rs 1,000, would divide the amount into nine parts, not three. The income is credited because it increases profit available to the partners. Memory cue: omitted income increases profit; divide the increase according to the profit-sharing ratio.

Related tags

Omitted IncomeEqual SharingThree Partners

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