Interest on drawings of Rs 1,500 was credited to the partner's account although it should have been debited. What is the effect?

Correct answer: It will be overstated by Rs 3,000

The governing concept is rectification of a reversed debit-credit entry. Interest on drawings is normally debited to the partner’s account because the partner bears this charge, while the firm recognises corresponding income. The correct treatment would therefore reduce the partner’s balance by Rs 1,500. Instead, a credit of Rs 1,500 was recorded, which increases the balance by Rs 1,500. Comparing the incorrect credit with the required debit, the total difference is Rs 1,500 + Rs 1,500 = Rs 3,000. Thus the partner’s account is overstated by Rs 3,000. Option B counts only the wrong credit, option C gives the wrong direction, and option D ignores the error. Hence option A is correct.