Interest on drawings of Rs 3,200 was credited to the partner’s account, although the correct treatment was a debit. By how much will the partner’s balance be overstated?

Correct answer: Rs 6,400 / ₹6,400

The governing concept is the effect of reversing the correct debit and credit treatment. Interest on drawings is income for the firm and a charge against the partner, so the partner’s account should be debited by Rs 3,200. Instead, it was credited by Rs 3,200. Relative to the correct position, the account moves Rs 3,200 upward because the required debit is missing, and another Rs 3,200 upward because an equal credit is wrongly recorded. Total overstatement is therefore Rs 3,200 + Rs 3,200 = Rs 6,400. Option A is correct. A Rs 3,200 answer counts only one side of the error, while C and D ignore the double effect.