If interest on drawings (₹6000) is wrongly written on the debit side of profit and loss appropriation account what is the total error in profit?

Correct answer: (₹12000)

The direct answer is option A: the total error in profit is ₹12,000. Interest on drawings is income for the firm, so it must be credited to the Profit and Loss Appropriation Account. The wrong entry debited ₹6,000, which reduced profit by ₹6,000. The correct entry would credit ₹6,000, which would increase profit by ₹6,000. Therefore, changing the wrong debit into the correct credit causes a total difference of ₹6,000 + ₹6,000 = ₹12,000. Option A is correct because it gives this double effect. Option B, ₹6,000, counts only the credit that should have been made or only one side of the correction. Option C, ₹3,000, has no accounting basis here. Option D, no error, is wrong because the account side was changed and profit was affected. Remember: when an amount wrongly debited should have been credited, the total correction is twice the amount.