If an adjustment requires debiting A by ₹2,000 and crediting B by ₹2,000, what does it mean?

Correct answer: A's account decreases by ₹2,000 and B's account increases by ₹2,000 — i.e. a transfer of ₹2,000 from A to B

Debit/credit effects depend on account type. Debiting A (a partner’s capital/current account) reduces A’s balance by ₹2,000, while crediting B increases B’s balance by ₹2,000. Therefore the entry represents an internal transfer of ₹2,000 from A to B. The closest distractor (B) is wrong because a debit to A does not increase A’s balance. Exam tip: For partner accounts remember — debit decreases capital/current balances, credit increases them; use that to interpret adjustments.