Question : Choose the incorrect journal entry. When Present Adjusted Capital (after adjustments) is more than the Proportionate Capital:
Option 1: Concerned Partner's Capital A/c ...Dr.
To Cash A/c or Bank A/c
Option 2: Concerned Partner's Capital A/c ...Dr.
To Concerned Partner's Current A/c
Option 3: Cash A/c or Bank A/c or Concerned Partner's Current A/c.....Dr
To Concerned Partner's Capital A/c .
Option 4: None of the above
Correct Answer: None of the above
Solution : Answer = None of the above.
All entries provided are correct. Each reflects an adjustment made when the Present Adjusted Capital exceeds the Proportionate Capital of a partner. These entries ensure proper accounting treatment and reflect the necessary adjustments in the partner's capital accounts.
Hence, the correct option is 4.
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