Nimrat, Simrat and Harjeet are partners sharing profits and losses in the ratio of 5 : 3 : 2. The partnership deed provides for charging interest on drawings @ 10% p.a. The drawings of Nimrat, Simrat and Harjeet during the year ending March 31, 2025 amounted to Rs. 60,000, Rs. 45,000 and Rs. 30,000 respectively, which were made on 1st April, 2024. After the final accounts have been prepared, it was discovered that interest on drawings has not been taken into consideration. If the necessary adjustment is made for rectification of this error, then:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Nimrat's Capital account will be credited by Rs. 750.
Interest on drawings is charged to each partner and then shared by all as a gain of the firm in the profit sharing ratio. To put right the omission, each partner's charge is compared with his share of the total; only the net difference is passed.
Interest on drawings for the full year (drawn on 1st April) at 10%:
Nimrat = Rs. 60,000 × 10% = Rs. 6,000
Simrat = Rs. 45,000 × 10% = Rs. 4,500
Harjeet = Rs. 30,000 × 10% = Rs. 3,000
Total = Rs. 13,500
Share of the total in 5 : 3 : 2:
Nimrat = Rs. 13,500 × 5/10 = Rs. 6,750
Simrat = Rs. 13,500 × 3/10 = Rs. 4,050
Harjeet = Rs. 13,500 × 2/10 = Rs. 2,700
Net effect:
Nimrat = Rs. 6,750 − Rs. 6,000 = Rs. 750 credit
Simrat = Rs. 4,050 − Rs. 4,500 = Rs. 450 debit
Harjeet = Rs. 2,700 − Rs. 3,000 = Rs. 300 debit
Note: NTA picked this question from an NCERT (2026-27) illustration and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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