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Share of loss of Rs 11000 was credited to partners account. The correct treatment was debit. What is the wrong effect on closing balance?

Answer and explanation

Correct answer: Overstated by Rs 22000

Loss should have been debited but was credited. The difference between correct and wrong balance is twice the amount which is Rs 22000.

Related tags

Loss ShareError EffectCapital AccountCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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