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A and B share profits in the ratio 2:1. A's salary of ₹18000 was wrongly debited to expense and also debited in appropriation. Accounts are closed. What is the correction?

Answer and explanation

Correct answer: Credit A ₹6000 and debit B ₹6000

Salary was correct once in appropriation but expense debit reduced profit. The reduced profit burden fell in 2:1 so net correction favours A by ₹6000.

Related tags

PartnershipError CorrectionDouble ChargeAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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