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If profit was distributed in wrong ratio and now only difference entry is to be passed what is it called?

Answer and explanation

Correct answer: Adjustment entry

Entry for only the difference is called adjustment entry. It reduces the need to reopen old accounts.

Related tags

Adjustment EntryDifference EntryWrong RatioAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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