Anu and Tanu are equal partners with fixed capitals of Rs. 2,00,000 and Rs. 1,00,000, respectively. After closing the accounts for the year ending 31st March 2019, it was dis covered that the interest on capitals @ 8% per annum was omitted to be provided. In the adjusting entry

The correct answer is: C. Anu will be credited with Rs. 4,000 and Tanu will be debited with Rs. 4,000.

The interest on capital is an income for the partners. Since it was omitted to be provided, it should be adjusted in the current year’s accounts. The adjusting entry will be:

• Debit Interest on Capital A/c (Anu) Rs. 4,000
• Credit Interest on Capital A/c (Tanu) Rs. 4,000

This will increase Anu’s capital by Rs. 4,000 and decrease Tanu’s capital by Rs. 4,000.

Here is a detailed explanation of each option:

• Option A: Anu will be credited with Rs. 6,000 and Tanu will be credited with Rs. 8,000. This is incorrect because the interest on capital is an income for the partners, not an expense. Therefore, it should be credited to the partners’ capital accounts, not debited.
• Option B: Anu will be debited with Rs. 16,000 and Tanu will be debited with Rs. 8,000. This is incorrect because the interest on capital is an income for the partners, not an expense. Therefore, it should be credited to the partners’ capital accounts, not debited.
• Option C: Anu will be credited with Rs. 4,000 and Tanu will be debited with Rs. 4,000. This is correct because the interest on capital is an income for the partners, and it should be credited to the partners’ capital accounts.
• Option D: Anu will be debited with Rs. 4,000 and Tanu will be credited with Rs. 4,000. This is incorrect because the interest on capital is an income for the partners, not an expense. Therefore, it should be credited to the partners’ capital accounts, not debited.