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If the debit side of the Profit and Loss Appropriation Account exceeds the credit side by ₹24000 and A B share profits and losses equally what entry is needed?

Answer and explanation

Correct answer: Debit A and B accounts ₹12000 each

Excess debit side creates appropriation loss. It is debited to partners in the loss sharing ratio.

Related tags

PartnershipAppropriation LossCapital AccountsAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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