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If A and B share profits equally (1:1) and an omitted expense of ₹6,000 from a prior period is discovered, how much will be debited to B's account?

Answer and explanation

Correct answer: Three thousand rupees

An omitted expense reduces profit and is adjusted against partners according to their profit-sharing ratio. With A and B sharing equally (1:1), the ₹6,000 expense is split equally, so B is debited by ₹6,000÷2 = ₹3,000. Option A (₹6,000) is incorrect because the entire amount would not be charged to one partner; option C (₹2,000) shows an incorrect split. Exam tip: Always divide an omitted expense by the partners' profit-sharing ratio to find each partner's debit.

Related tags

Omitted ExpenseEqual SharingPartnership AccountsAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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