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Class 12 Accountancy Partnership Accounts - Basic Concepts AdjustmentsExpert

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A and B share profits in (3:1). Interest on A's drawings was (₹16000), but it was wrongly charged to both in profit ratio as (₹12000) and (₹4000). What will happen in rectification?

Answer and explanation

Correct answer: Debit A and credit B (₹4000)

The full (₹16000) should be charged to A. A was charged only (₹12000) and B was wrongly charged (₹4000), so debit A and credit B.

Related tags

Partnership Adjustments Drawings Interest Wrong Partner Partnership Accounts Basic Concepts Accountancy Class 12 Mcq

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