If interest on drawings was overcharged, how should the concerned partner’s account be corrected?

Correct answer: By crediting the partner’s account

The governing concept is correction of an excessive debit. Interest on drawings is normally debited to the concerned partner’s account because it is charged to that partner. If the interest has been overcharged, the partner’s account contains a debit greater than the amount actually due. The excess debit must be reversed by crediting the partner’s account with the difference between the amount charged and the amount that should have been charged. Only the excess is corrected; the valid interest remains recorded. Therefore option A is correct. Another debit would increase the error, while closing the account or creating goodwill has no connection with this rectification.