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Class 12 Accountancy Partnership Accounts - Basic Concepts AdjustmentsExpert

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A and B share profits in (7:3). Expense of (₹30000) was wrongly debited to B's drawings. Correct treatment is as firm expense. What is the net effect on B in rectification?

Answer and explanation

Correct answer: Credit B (₹21000)

Removing wrong debit credits B by (₹30000), but expense reduces B's profit by (₹9000). Net credit is (₹21000).

Related tags

Partnership Adjustments Wrong Drawings Expense Partnership Accounts Basic Concepts Accountancy Class 12 Mcq

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