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A and B shared profit Rs 150000 equally. Later it was found that A should first get salary Rs 30000 and remaining profit should be shared in ratio two to three. What happens to A in correction?

Answer and explanation

Correct answer: Debit Rs 3000

A received Rs 75000 wrongly. Correct share is salary Rs 30000 plus two fifths of Rs 120000 which is Rs 78000 so A should be credited Rs 3000.

Related tags

Past AdjustmentSalaryProfit CorrectionProfit DistributionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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