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A B profit ratio is three to two. A salary is fifteen thousand and B commission is ten thousand. After appropriations there is loss of twenty five thousand rupees. What is the net effect in A account?

Answer and explanation

Correct answer: Zero

A share of loss after appropriations is fifteen thousand debit and salary is fifteen thousand credit. Both cancel so net effect is zero.

Related tags

SalaryLoss After AppropriationNet EffectProfit DistributionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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