If A is allowed share only in profits and exempted from losses what happens to A account when there is loss in the year?

Correct answer: Loss will not be debited to A

The direct answer is A: loss will not be debited to A. A special partnership agreement may give a person a share in profits while expressly protecting that person from losses. When the firm suffers a loss, A’s capital or current account is therefore not charged with any share of that loss. The loss is divided only among the partners who are responsible for bearing losses, according to their agreed ratio or the applicable rule. Option A is correct because it directly applies the exemption. Option B is wrong because A has specifically been exempted, so the whole loss cannot be debited to A. Option C is wrong because a loss is not a credit or gain to A; it is simply not charged to A. Option D is unrelated: exemption from loss does not automatically create a salary entitlement. The key exam cue is to separate “share in profits” from “liability for losses”; a special clause can treat them differently.