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Under fluctuating capital method profit share Rs 16000 was wrongly debited. What is the effect on capital balance?

Answer and explanation

Correct answer: Understated by Rs 32000

Profit share should have been credited but was debited. The difference between correct and wrong balance is double which is Rs 32000.

Related tags

Wrong SideProfit ShareError EffectAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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