A firm which maintains fixed capital accounts had two partners, Vimla and Kamla, sharing profits in the ratio $1:1$. The firm credited the partners with profit without allowing interest on Capital, which is allowed in the deed. Choose the correct option to pass a journal entry for the past adjustment if the Interest on capital is ₹2,000 for Vimla and ₹3,000 for Kamla.

Let's compute the adjustment details:Total Interest on Capital ($\text{IoC}$) to be given = $2,000\text{ (Vimla)}+3,000\text{ (Kamla)}=₹5,000$.Since this ₹5,000 was previously distributed as profits without providing $\text{IoC}$, it needs to be taken back from them in their profit-sharing ratio ($1:1$).Reduction in profit share = ₹2,500 each for Vimla and Kamla.Net Effect Evaluation Table:Vimla: Should receive ₹2,000 ($\text{IoC}$) but distributed ₹2,500 profit $\to$ Net Debit of ₹500.Kamla: Should receive ₹3,000 ($\text{IoC}$) but distributed ₹2,500 profit $\to$ Net Credit of ₹500.Since the firm maintains Fixed Capital accounts, all such corrective adjustments must be routed through the Current Accounts.Adjustment entry:
$$\begin{gathered} \text{Vimla’s Current A/c Dr. }500 \\ quad\text{To Kamla’s Current A/c }500 \end{gathered}$$