If interest on capital was payable only to A but was given to all partners what must be done?

Correct answer: Debit those who wrongly received interest

The direct answer is A: debit the partners who wrongly received interest. The deed allows interest on capital only to A. If interest was mistakenly credited to all partners, the other partners received a benefit to which they were not entitled. Their accounts must therefore be debited to cancel the incorrect credits. A’s correctly due interest remains credited to A. Option A is correct because it reverses the wrongful benefit and preserves the proper credit. Option B is wrong because crediting everyone again would increase the error. Option C is wrong because the bank is not the party that received the accounting benefit; this is a partners’ appropriation adjustment, not a bank transaction. Option D is wrong because an incorrect distribution must be corrected. The exact journal amount for each wrongly credited partner depends on the amount that was mistakenly given, but the direction is clear: debit the wrong recipients and keep or credit the rightful recipient. Remember: reverse the benefit from the person who received it wrongly.