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A and B distributed profit of ₹120000 in the wrong ratio 3:1 while the correct ratio was 2:3. What is the correction?

Answer and explanation

Correct answer: Debit A ₹42000 and credit B ₹42000

Wrong shares were A ₹90000 and B ₹30000 while correct shares are A ₹48000 and B ₹72000. So ₹42000 is transferred from A to B.

Related tags

PartnershipError CorrectionWrong RatioAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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