If an expense for a year was omitted (not recorded) and that expense reduces the total profit, in what ratio will the partners' accounts be debited for the loss arising from that omitted expense?

Correct answer: Profit sharing ratio

An omitted expense reduces profit; the reduction in profit is borne by partners in the same proportion as their profit sharing ratio. Capital ratio is incorrect because capital ratio relates to capital-based adjustments (like interest on capital), not the distribution of a change in profit caused by operating income/expense. Exam tip: First determine whether the omitted item is an expense (reduces profit → debit partners) or income (increases profit → credit partners), then apply the profit sharing ratio to adjust partners' accounts.