Simi, Manu and Beena are partners in a firm sharing profits and losses in the ratio of 2:2:1. The balances of their fixed capital accounts on 1st April, 2020, were: Simi ₹ 1,00,000, Manu ₹ 1,00,000 and Beena ₹ 80,000.

Simi, Manu, and Beena are partners in a firm sharing profits and losses in the ratio of 2:2:1. The balances of their fixed capital accounts on 1st April 2020, were: Simi ₹ 1,00,000, Manu ₹ 1,00,000 and Beena ₹ 80,000.

After the accounts for the year ended 31st March 2021, were prepared, it was discovered that interest on capital @ 10% per annum had been credited to the Partner’s Current even though it was not provided in the partnership deed.

The error in Simi’s Capital Account/Current Account will be rectified by

a) Debiting her Capital Account with ₹ 1,200

b) Crediting her Current Account with ₹ 1,200

c) Debiting her Current Account with ₹ 1,200

d) Crediting her Capital Account with ₹ 1,200