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A and B share profits in the ratio 3:2. A's salary ₹20000 and B's commission ₹10000 were omitted. Profit of ₹50000 was already distributed in ratio. What is the net correction?

Answer and explanation

Correct answer: Credit A ₹8000 and debit B ₹8000

Total omitted appropriation is ₹30000 and its burden is in profit ratio. Net effect of salary and commission gives ₹8000 in favour of A.

Related tags

PartnershipPast AdjustmentMultiple AdjustmentsAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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