A firm which maintains fixed capital had two partners Vimla and Kamla sharing profits in the ratio 1:1 The firm credited the partners with profit without 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 Rs.2000 for Vimla Rs.3000 for Kamla

Question

Option 1: Vimla's capital A/c Dr 500 To Kamla's Capital A/c 500

Option 2: Vimla's current A/c Dr 500 To Kamla's Current A/c 500

Option 3: Kamla's capital A/c Dr 500 To Vimla's Capital Dr 500

Option 4: Kamla's current A/c Dr 500 To Vimla's Current A/c 500

AfterBoards · Accepted Answer

The answer is 'Vimla's current A/c Dr 500 To Kamla's Current A/c 500'. View full solution:

CUET Accountancy 2022 16 July Shift 2 PYQs

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