Question

P, Q and R are partners in a firm sharing profits and losses in the ratio of 2: 2: 1. For the year ended 31^st March, 2022, interest on capital was credited to them @ 10% p.a. instead of 5% p.a. Their fixed capitals were ₹ 2,00,000;  ₹ 1,00,000;  ₹ 50,000 respectively. The necessary adjustment entry to rectify the error will be:

विकल्प

• JOURNAL
  S.No	Particulars	L.F.	Debit Amt.(₹)	Credit Amt.(₹)
  (a)	P's Current A/c      ...Dr.		2,000
  	To Q's Current A/c			1,000
  	To R's Current A/c			1,000

• JOURNAL
  S.No	Particulars	L.F.	Debit Amt.(₹)	Credit Amt.(₹)
  (b)	P's Current A/c       ...Dr.		3,000
  	To Q's Current A/c			2,000
  	To R's Current A/c			1,000

• JOURNAL
  S.No	Particulars	L.F.	Debit Amt.(₹)	Credit Amt.(₹)
  (c)	P's Capital A/c      ...Dr.		2,000
  	To Q's Capital A/c			1,000
  	To R's Capital A/c			1,000

• JOURNAL
  S.No	Particulars	L.F.	Debit Amt.(₹)	Credit Amt.(₹)
  (d)	P's Capital A/c     ...Dr.		3,000
  	To Q's capital A/c			2,000
  	To R's Capital A/c			1,000

Answer 1

JOURNAL
S.No	Particulars	L.F.	Debit Amt.(₹)	Credit Amt.(₹)
(d)	P's Capital A/c     ...Dr.		3,000
	To Q's capital A/c			2,000
	To R's Capital A/c			1,000

Explanation:

 

Adjustment Table
Particulars	P's current A/c		Q's current A/c		R's current A/c		Firm
	Dr. (₹)	Cr. (₹)	Dr. (₹)	Cr. (₹)	Dr. (₹)	Cr. (₹)	Dr. (₹)	Cr. (₹)
Debited Excess of Interest on Capital	10,000	-	5,000	-	2,500	-	-	17,500
For sharing the above profit (2 : 2: 1)	-	7,000	-	7,000	-	3,500	17,500	-
	10,000	7,000	5,000	7,000	2,500	3,500	17,500	17,500
Net Effect	3,000 (Dr.)		2,000 (Cr.)		1,000 (Cr.)		Nil