A , B and C sharing profits and losses equally, have capitals of Rs 1,10,000, Rs 1,00,000 and Rs 60,000. Interest was wrongly debited to them at 10% instead of 5%. What will be the correct journal entry for making adjustment in respect of the the profit/loss to be shared by the partners?

A's Capital A/C Dr      ₹1000
B's Capital A/c Dr       ₹500
   To C's Capital A/c            ₹1,500

"Wrongly Debited -
A- 1,10,000 *10% = 11,000 Dr
B - 1,00,000 * 10% = 10,000 Dr
C - 60,000 * 10% = 6,000 Dr
Correct Amount in respect of Interest on Capital
A-1,10,000 *5% = 5,500
B- 1,00,000 * 5% = 5,000
C - 60,000 * 5%= 3,000
Additional divisible Profit on account of wrong calculation of Interest on Capital= (11,000 + 10,000 + 6,000 ) - (5500+5000+3000)
= 13,500 / 3 = 4,500 to each partner as they share profit and loss equally.
Thus, share of each partner in respect of Interest and Profit would be as Follows:
A- 5500 + 4500 = 10,000 Cr
B - 5,000 + 45,00 = 9,500 Cr
C - 3,000 + 4,500 = 7,500 Cr
Thus, the adjustment entry would be:
A's Capital A/C dr - 1000
B's Capital A/c dr - 500
To C's Capital A/c -- 1,500 "