Question

Ajay and Vinod are partners in the ratio of 3:2. Their fixed Capital were ₹3,00,000 and ₹4,00,000 respectively. After the close of accounts for the year it was observed that the Interest on Capital which was agreed to be provided at 5% pa was erroneously provided at 10%p.a. By what amount will Ajay’s account be affected if partners decide to pass an adjustment entry for the same?

Options

• Ajay’s Current A/c will be Debited by ₹15,000

• Ajay’s Current A/c will be Credited by ₹6,000

• Ajay’s Current A/c will be Credited by ₹35,000

• Ajay’s Current A/c will be Debited by ₹20,000

Answer 1

Ajay’s Current A/c will be Credited by ₹6,000