Question

A, B and C sharing profits in the ratio of 2 : 2 : 1 have fixed capitals of ₹3,00,000, ₹2,00,000 and ₹1,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered that interest on capitals was provided @ 12% instead of 10% p.a. In the adjusting entry 2 points (A) Cr. A ₹1,200; Dr. B ₹800 and Dr. C ₹400 (B) Dr. A ₹1,200; Cr. B ₹800 and Cr. C ₹400 (C) Cr. A ₹800; Cr. B ₹400 and Dr. C ₹1,200 (D) Dr. A ₹800; Dr. B ₹400 and Cr. C ₹1,200​

Answer 1

Answer:

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Explanation:

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