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A and B shared profit equally. Later it was found that A's salary of ₹18000 and B's interest on drawings of ₹6000 were omitted. What is the net correction?

Answer and explanation

Correct answer: Credit A ₹12000 and debit B ₹12000

Salary gives A a net benefit of ₹9000 and B's drawing interest gives A ₹3000 more. Total adjustment is ₹12000 in favour of A.

Related tags

PartnershipPast AdjustmentCombined AdjustmentAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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