"It is quite possible that after preparation of final accounts at the end of an accounting period, some errors might be detected. And to rectify these errors or omissions, we never go for altering the books of accounts. These errors or omissions are rectified directly through partners' capital account, i.e. by passing adjustment entries. The adjustments that are made to rectify the errors without altering previously prepared accounts are known as past adjustments.
I would suggest you to follow, give and take approach while attempting these questions. Suppose, if firm has not charged interest on drawings from partners for Rs 3,500 and Rs 2,500. This means, it is the amount that firm has to take from partners. And, also it is the amount of income for the firm that will be distributed to the partners in profit sharing ratio, say 2:1.
Accordingly, Firm will Take Interest on Drawings from X and Y, Rs 3,500 and 2,500, i.e. 6000
and Give Rs 6,000 to X and Y in PSR, i.e. Rs 4,000 and 2,000.
Comparing the figures, it is clear that X is to be given Rs 500 more and from Y, firm is to take Rs 500. Accordingly, X's Capital Account would be credited and Y's Capital Account would be debited.
This is how, we can easily do away questions related to Past Adjustments. Hope this helps!!"