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When different partners' rights are written in the deed, which accounting mistake is reduced?

Answer and explanation

Correct answer: Mistake of giving wrong salary or interest

Direct answer: Option A, the mistake of giving wrong salary or interest. A partnership deed can state different rights for different partners, such as salary, commission, interest on capital, interest on drawings or profit share. Clear written terms allow the accountant to apply the correct amount to the correct partner. Step by step: read each partner’s entitlement; identify the condition and rate; calculate the amount; post it to the appropriate appropriation or partner account. Option A is correct because unclear rights commonly cause incorrect salary or interest adjustments. Option B is wrong because forgetting the weight of goods is an inventory or measurement error, not mainly a partnership-rights error. Option C is irrelevant because pronouncing a customer’s name is not accounting. Option D is irrelevant because changing a bank building has no relation to partner entitlements. Clear rights also reduce disputes and make checking easier. Memory cue: deed records who gets what, so use it before posting salary, interest or commission.

Related tags

Partners RightsAccounting ErrorsPartnership Deed

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