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In a partnership, an expense of \(\text{Rs }12{,}000\) is omitted from the books. Profits are shared equally by \(A\), \(B\), and \(C\). The omitted expense should be debited to each partner’s capital account by how much (in Rs)?

Answer and explanation

Correct answer: Rs 4,000

Since profits are shared equally, each partner bears \(\dfrac{1}{3}\) of the omitted expense. So, each is debited by \(\dfrac{12{,}000}{3}=4{,}000\) rupees.

Related tags

Partnership AccountsAdjustmentsOmitted ExpenseCapital AccountsProfit Sharing

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