Under fixed capital method drawings were wrongly debited to capital account. What is the correct correction?

Correct answer: Credit Capital Account and debit Current Account

The direct answer is option A: credit Capital Account and debit Current Account. Under the fixed capital method, the capital account normally remains unchanged except for permanent capital introduced or withdrawn. Drawings are recorded in the partner’s Current Account, because they reduce the partner’s claim temporarily. Here, the drawing was wrongly debited to Capital Account. A debit has reduced capital, so that wrong effect must be cancelled by crediting Capital Account. The same drawing must then be correctly recorded by debiting Current Account. Thus the correction entry is: Current Account Dr. and Capital Account Cr. Option A is correct because it removes the wrong debit from capital and places the debit in the proper account. Option B would debit capital again and credit current account, making the error worse. Option C concerns Bank Account and does not correct the wrongly debited capital; it also may not represent the actual cash entry. Option D is not a journal correction: drawings cannot simply be added to profit. Memory cue: under fixed capital, permanent changes go to Capital Account, while drawings and related items go to Current Account.