A and B are partners, sharing profits equally. Their fixed capitals were Rs 2,00,000 and Rs 3,00,000 respectively. Interest on capital as provided und - Accountancy MCQ CUET Accountancy 2025 29 May Shift 2 2026 | ExamTest.live

mediumMCQCUET Accountancy 2025 29 May Shift 22026Accountancy

1 mark

A and B are partners, sharing profits equally. Their fixed capitals were Rs 2,00,000 and Rs 3,00,000 respectively. Interest on capital as provided under partnership deed @10% p.a was omitted. Select the correct option from the following:

Solution & Step-by-step Explanation

Let's prepare a table for the past adjustment:Interest on Capital to be credited:For A: 10% of 2, 00, 000 = Rs. 20, 000 (Cr.) For B: 10% of 3, 00, 000 = Rs. 30, 000 (Cr.) Total Interest omitted = Rs. 50,000Division of loss of Rs. 50,000 due to omission (equally):For A: Rs. 25, 000 (Dr.) For B: Rs. 25, 000 (Dr.) Net Effect:Partner A: Rs. 20, 000 (Cr.) - Rs. 25, 000 (Dr.) = Rs. 5, 000 (Dr.) Partner B: Rs. 30, 000 (Cr.) - Rs. 25, 000 (Dr.) = Rs. 5, 000 (Cr.) Therefore, A's Capital/Current account will be debited by Rs 5,000.

Try it yourself before checking the explanation above.

A and B are partners, sharing profits equally. Their fixed capitals were Rs 2,00,000 and Rs 3,00,000 respectively. Interest on capital as provided under partnership deed @10% p.a was omitted. Select the correct option from the following:

A capital account will be debited by 25,000

A capital account will be debited by 5,000

B capital account will be debited by 5,000

B capital account will be debited by 25,000

Practice with timed mock tests and track your performance across Accountancy.