Anand, Rid hi and Shy am were partners in a firm sharing profits and losses in the ratio of2 : $\displaystyle 2$ : 1. Their fixed capitals were ₹ $\displaystyle 1,00,000$, ₹ $\displaystyle 60,000$ and ₹ $\displaystyle 40,000$ respectively. For the year ended 31st March, $\displaystyle 2023$, interest on capital was credited to their capital accounts @ $\displaystyle 9$% p.a instead of $\displaystyle 7$% p.a. Pass the necessary adjusting Journal entry.

Books of Anand, Ridhi and Shyam Journal Date Particulars LF Dr. Cr. Amount Amount (₹) (₹) Anand’s Current A/c Dr. $\displaystyle 400$ To Ridhi’s Current A/c $\displaystyle 400$ (Excess Interest allowed on capital, now rectified) Working Notes: Table showing adjustment Partners Dr. Interest on Cr. Profits Net Effect Capital Dr. Cr. @$\displaystyle 2$% (₹) (₹) (₹) (₹) Anand $\displaystyle 2,000$ $\displaystyle 1,600$ $\displaystyle 400$ - Ridhi $\displaystyle 1,200$ $\displaystyle 1,600$ - $\displaystyle 400$ Shyam $\displaystyle 800$ $\displaystyle 800$ - - $\displaystyle 4,000$ $\displaystyle 4,000$ $\displaystyle 400$ $\displaystyle 400$