If the deed provides interest on capital but profit is not sufficient in the year, what is the general adjustment limit?

Correct answer: Up to available profit

The governing concept is the treatment of interest on capital as an appropriation of profit under the usual partnership-accounting framework, subject to the partnership deed and applicable law. If the amount calculated as interest is greater than the profit available for appropriation, the normal adjustment cannot exceed that available profit. For example, if calculated interest is Rs 20,000 but only Rs 12,000 is available, the credit is generally restricted to Rs 12,000 under the stated assumption. It is not automatically the full calculated amount, always nil, or related to drawings. Therefore option A is the suitable general answer, while exact deed terms must always be checked.