Question

Dilshad, Ajit and Deepna were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their fixed capitals were: ₹ 5,00,000, ₹ 4,00,000 and ₹ 1,00,000, respectively. After closing the accounts for the year ended 31st March 2025, it was discovered that interest on partners’ capitals was provided @ 6% p.a. instead of 7% p.a. The adjustment entry to rectify the above error will be:

पर्याय

• Journal
  Particulars	Dr. Amount (₹)	Cr. Amount (₹)
  Deepna’s Current A/c   ....Dr.	1,000	-
  To Dilshad’s Current A/c	-	1,000

• Journal
  Particulars	Dr. Amount (₹)	Cr. Amount (₹)
  Dilshad’s Current A/c   ....Dr.	1,000	-
  To Deepna’s Current A/c	-	1,000

• Journal
  Particulars	Dr. Amount (₹)	Cr. Amount (₹)
  Deepna’s Capital A/c   ....Dr.	1,000	-
  To Dilshad’s Capital A/c	-	1,000

• Journal
  Particulars	Dr. Amount (₹)	Cr. Amount (₹)
  Dilshad’s Capital A/c   ....Dr.	1,000	-
  To Deepna’s Capital A/c	-	1,000

Answer 1

Journal
Particulars	Dr. Amount (₹)	Cr. Amount (₹)
Deepna’s Current A/c   ....Dr.	1,000	-
To Dilshad’s Current A/c	-	1,000

Explanation:

Since the firm provided 6% interest instead of 7%, the partners are entitled to an additional 1% interest on their capital. This total extra interest of ₹ 10,000 (5,000 for Dilshad, 4,000 for Ajit, and 1,000 for Deepna) is treated as a loss for the firm and must be divided among them in their profit-sharing ratio of 2 : 2 : 1. After comparing what they should receive (Interest) versus what they lose (Profit share), Deepna ends up with a net deficit of ₹ 1,000, while Dilshad is owed a net surplus of ₹ 1,000. Because the problem mentions Fixed Capitals, this adjustment must be passed through their Current Accounts, making the correct entry: Deepna’s Current A/c Dr. to Dilshad’s Current A/c for ₹ 1,000.