A, B and C are partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. Their fixed capitals were ₹ 1,00,000, ₹ 2,00,000 and ₹ 3,00,000 respectively

A, B and C are partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. Their fixed capitals were ₹ 1,00,000, ₹ 2,00,000 and ₹ 3,00,000 respectively. For the year ended 31st March, 2024 interest on capital was credited to them @ 10% instead of 9% p.a. Pass the necessary adjusting journal entry.

Ans:

B’s Current A/c Dr. 200
C’s Current A/c Dr. 1,200
To A’s Current A/c 1,400

Note: Since the capitals are fixed, Current Accounts will be debited or credited.