Question

Ram, Mohan and Sohan sharing profits and losses equally have capitals of Rs.3,00,000, Rs.2,00,000, Rs1,00,000. For the year 2009, interest was credited to them @ 10% instead of 8%. In the adjustment entry:

A)Ram's Current a/c debited Rs 400 to Sohan’s Current a/c Credited RS 400.

B)Mohan Current a/c debited Rs 400 to Ram's Current a/c Credited RS 400.

C)Mohan Current a/c debited Rs 400 to Sohan’s Current a/c Credited RS 400.

D)Mohan Current a/c debited Rs 400 to Sohan’s Current a/c Credited RS 400.​

Answer 1

Answer:

Answer D

Explanation:

because being the rate of interest is equally shared between the ac holders of the share market then on reducing their current a/c balance will be debited with a percentage of 18%in total