Krishna, Sandeep and Karim are partners sharing profits in the ratio of 3:2:1. Their fixed capitals are: Krishna Rs. 1,20,000, Sandeep 90,000 and Karim 60,000. For the year 2024-25, interest was credited to them @ 8% p.a. instead of 5% p.a. Find the amount transferred from Karim to Krishna's current account as an adjustment.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs. 450
The extra interest credited (8% instead of 5%, so 3% too much) is a charge the partners should have borne in their profit sharing ratio 3 : 2 : 1. The adjustment reverses the excess interest and recharges the same total in that ratio.
Excess interest credited at 3%: Krishna Rs. 3,600, Sandeep Rs. 2,700, Karim Rs. 1,800; total Rs. 8,100
Borne in 3 : 2 : 1: Krishna Rs. 4,050, Sandeep Rs. 2,700, Karim Rs. 1,350
Krishna: Rs. 3,600 − Rs. 4,050 = Rs. 450 too little, so his current account is credited
Sandeep: Rs. 2,700 − Rs. 2,700 = no adjustment
Karim: Rs. 1,800 − Rs. 1,350 = Rs. 450 too much, so his current account is debited
Karim’s Current A/c is debited and Krishna’s Current A/c credited with Rs. 450.
Note: NTA picked this question from an NCERT (2026-27) exercise and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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