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If reserve of ten thousand rupees was omitted and A B share profit in two to three ratio how much will be debited to B?

Answer and explanation

Correct answer: Six thousand rupees

The direct answer is option B, Rs 6,000 debit to B. A reserve is an accumulated profit belonging to the partners. If the reserve of Rs 10,000 was omitted while accounts were prepared, the partners may have distributed the remaining profit incorrectly. To correct the omission, the reserve amount is adjusted among the partners in their profit-sharing ratio. A and B share in the ratio 2:3, so total parts are 2 + 3 = 5. B’s share is 3/5. Thus B’s amount is \(10,000 \times 3/5 = Rs 6,000\). Option B is correct. Option A, Rs 4,000, is A’s share, not B’s. Option C, Rs 10,000, is the whole reserve and ignores the ratio. Option D, Rs 2,000, is A’s two-fifths share, not B’s. The debit corrects the earlier excess credit or distribution to B. Memory cue: for ratio 2:3, B receives three of every five rupees.

Related tags

Reserve OmissionRatioNumerical

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