If income was recorded twice and the amount is Rs 8,000, by how much will profit decrease in the adjustment?

Correct answer: Rs 8,000

The governing concept is correction of a duplicated income entry. If income of Rs 8,000 has been recorded twice, one recording is correct and only the second recording is excess. The adjustment therefore removes one excess income amount, not both recordings. Since income had previously increased reported profit, removing the extra Rs 8,000 reduces profit by exactly Rs 8,000. The calculation is: excess income = Rs 8,000 × 1 = Rs 8,000; decrease in profit = Rs 8,000. Rs 16,000 incorrectly removes the valid entry as well, Rs 4,000 has no basis, and zero ignores the duplicated amount. Thus option A is correct.