A shares only profits and is exempt from losses. A B profit ratio is one to two. Loss is thirty thousand rupees. How much will be debited to B?

Correct answer: Thirty thousand rupees

The governing concept is the effect of an express loss-exemption clause. A is entitled to share profits but is specifically not liable for losses. Consequently, the entire loss of Rs 30,000 must be borne by B, regardless of the 1:2 profit-sharing ratio. B’s account will therefore be debited by Rs 30,000, making option A correct. Option B would incorrectly apply the profit ratio to the loss; option C would apply A’s one-part ratio to the loss even though A is exempt; and option D would fail to record the loss against the partner who must bear it. Profit and loss rights need not be identical when the deed provides otherwise.