Question

Ikka, Dukka and Teeka were partners sharing profits and losses in the ratio of 2 : 2 : 1. Their fixed capital balances were ₹ 5,00,000; ₹ 4,00,000 and ₹ 3,00,000 respectively. For the year ended March 31, 2024, profits of ₹ 84,000 were distributed without providing for interest on capital @ 10% p.a. as per the partnership deed.

While passing an adjustment entry, which of the following is correct?

Options

• Teeka will be debited by ₹ 4,200.

• Teeka will be credited by ₹ 4,200.

• Teeka will be credited by ₹ 6,000.

• Teeka will be debited by ₹ 6,000.

Answer 1

Teeka will be credited by ₹ 4,200.