If A interest on drawings of four thousand rupees was omitted and A B share profits equally what is net effect on A?

Correct answer: Debit two thousand rupees

The direct answer is A: debit A by Rs 2,000 net. Interest on drawings is income for the firm and should be charged to A by Rs 4,000. Because it was omitted, A initially avoids that debit. The firm’s profit is therefore overstated by Rs 4,000. Since A and B share profits equally, correcting the profit reduces each partner’s profit share by Rs 2,000. For A, the combined effect is a debit of Rs 4,000 for omitted drawings interest and a credit or reduction of debit of Rs 2,000 through the profit adjustment. Net debit to A = Rs 4,000 − Rs 2,000 = Rs 2,000. Option A is correct. Option B ignores A’s Rs 2,000 benefit from the over-distributed profit. Option C reverses the direction. Option D is wrong because both the omitted charge and the changed profit share affect A. Remember: charge A with the full omitted interest, then give A back his equal share of the reduced profit.