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Commerce · Q2243

Accounting

Graduate and Post Graduate · Commerce · question 2243

Q2243

X, Y and Z are equal partners with fixed capitals of Rs. 5,00,000, Rs. 3,00,000 and Rs. 1,00,000, respectively. After closing the accounts for the year ending 31st March 2019, it was discovered that the interest on capitals was provided @ 6% per annum instead of 5% per annum. In the adjusting entry

A.
X was debited with Rs. 2,000 and Z was credited with Rs. 2,000
Answer
B.
X was credited with Rs. 2,000 and Z was debited with Rs. 2,000
C.
Dr. X and Cr. Y by Rs. 2,000
D.
Cr. X and Dr. Y by Rs. 2,000

Answer: Option A

Solution

Answer: Option A
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