5,000.

Balances of Capital Accounts: XI,23,600 and

1:2. Ashais entitled
Q.7. Asha and Lata are partners sharing profits inthe ratio of
profit before charging any
to a salary of 2,00,000 p.a. and a commission of8% of net profit after charging her
commission. Lata is entitled to a commission of 8% of net amountedto ?5,40,000.
commission. Net Profit for the year ended 31 st March, 2023
Prepare Profit & Loss Appropriation Account.
[Ans. Share of Profit : Asha 785,600 and Lata 1,71,200.J
losses in the ratio of 2:3 with
Q. 8/4and B are partners in afirm sharing profitsor April, 2022. Each partner is
*4,00,000 and 8,00,000 respectively on lst commission of 10% on net
a
entitled to 10% p.a. interest on his capital, B is entitled
before charging any
profit remaining after deducting interest on capital but remaining after deducting
commission. A is entitled a commission of 8% of net profit
profit for the year ended
interest on capital and after charging all commissions, The 6,00,000.
31st March, 2023 prior to calculation ofinterest on capital was
Prepare Profit and Loss Appropriation Account.
Commission to B 48,000
[Ans. Share of Profit A1,60,000 and B 2,40,000:
and to 4 32,000.]

Fixed Capitals
15,000 respectively on
Q.9. Yand Z are partners with capitals of 25,000andon his capital. Z is entitled
interest
Ist April, 2022. Each partner is entitled to 9% p.a.
salary of 6,000 p.a. together with a commission of 6% of Net Profit remaining
to a
charging his commission. The
after deducting interest on capitals and salary and after any of the above mentioned
profits for the year ended 31st March, 2023 before making Accounts:(i) when capitals
adjustments amount to 30,800. Prepare Partner's Capital
are fixed, and (i)when capitals are fluctuating.
[Ans. Divisible Profits 20,000.
() When capitals are fixed :
Current A/cbalances : Y12,250 (Cr.); Z 18,550 (Cr.)
Capital A/c balances : YE25,000 (Cr. ): Z15,000 (Cr.)
(ii) When capitals are fluctuating :
CapitalA/c balances : YR37,250 (Cr.); Z *33,550 (Cr.)]
given in the question, the profits
Hint :When the profit sharing ratio of the partners is not
willbe shared equally
of 2,00,000; <2,00,000
0. 10.4. Band C were partnersin a firm having capitalsAccount balances were A:
And80,800respectively on Ist April, 2022. Their Current partnership deed the
10,000 and C :5,000 (Dr.). According to the
T20,000; B:
 ACCOUNTING,FOR PARTNEERSHIP FIRMS fUNDAMENTAL S 121
partners were entitled to interest on capital (@ 10% p.a. B heing the working partner
entitledto a salary of 6,000 per quarter. The profits were to he divided as
was also
follows:
The first R60,000 inproportion to their capitals.
:3:1
b) Next 1,00,00O in the ratio of 4
(c) Remaining profits to be shared equally.
The firm made profit of R2,80,000 for the year ended 31st March. 2021 hefore
chargingany ofthe albove items. Prepare the Profit &Ioss Appropriation Account and
pass
necessary joumal entry for apportionment of profits.
|Ans.Share of Profit : 4 R91,000; B78,500 and C238,500.]
Q. 11. 4, B and Centered into partnership on Ist April 2022 with capitals of
FI0.00,000, R8,00,000 and 5,00,000 respectively. On Ist July 2022. Badvanced
F2,00,000 and on Ist December 2022 Cadvanced 1,00,000 by way of loans to the
firm.
The Profit and Loss Account for the ycar ended 31.3.2023 disclosed a profit of
y170.000 but the partners could not agree upon the rate of interest on loans and the
profit sharing ratio. Prepare partner's Capital A/cs and Loan A/cs.
IAns Balance of Capital A/cs AR12,53,000, B 10,53,000 and C7,53,000.
Hint :In the absence of agreement, Interest on loan is to be paid @6% p.a. and profit wilI
be shared-egwally.
Lata and Mamta are partnerswith capitals of 3,00,000 and 2,00,000
eeciely sharing profits as Lata 70% and Mamta 30%. During the year ended 3Ist
2023 they earned a profit of 2,26,440 before allowing interest on partner's
loan. The terms of partnership are as follows:
{) Interest on Capital is to be alowed @7% p.a.
(ii) Lata to get a salary of 2,500per month.
(üi) Interest on Mamta's Loan account of T80,000 for thewhole year.
(iv) Interest on drawings of partners at 8% per annum. Dravwings being Lata
T36,000 and Mamta 48,000.
(v) 1/10th of the distributable profit should be transferred to General Reserve.
Prepare the Profit and Loss Appropriation Account.
[Ans, Share of Profit:Lata ?1,00,800 and Mamta 43,200.]
Hints : (i) Interest on Loan will be calculated at 6% p.a.
(ii) Interest on Drawings will be calculated for an average period of 6 months.
(ii) Transfer to General Reserve will be 10% of net profit, i.e., 10% of 1,60,000=
Z16,000.
Q. 13,4,B and C are partners sharing the profits and losses in the ratio of
2:3:5, On 1st July, 2021, Aand B granted loans of 2,00,000 and 1,00,000
Tespectively to the firm. Show the distribution of profits/losses for the year ended 3lst
March, 2022, in the following cases :
Case (a) If the profits before interest for the year amounted to 7,500.
(b) If the loss before interest for the year amounted to 7,500.
 T20,000; wil are profitstfhoer after toIst
adjustments and JIstCOmm1sSi
Interest
on. profientitled
t to RS,000. hiets. Sls 1 20
proftof
R80,800
O.
be Hint
10.4,shared Capital
(ii)
When Current When
[Ans.
() fixed,
deducting salary
a
April, Q. 9. to
Ans.
Prepare
4 March.
paptalyof lAns.PrCoeparmmieCommi
s ion. sion. saQ.lan7Asha
(Q . a
JAns. Prenare March,
B: When : Capital 32,000.] remaining
on to s4
respectively
10,000 Band equally. capitals
Divisible and
amount
(i) year 6,000
2022.
of and Y Share
Profit 2023capital is4 10% Shar and BalanceDis isible Protit 2025
Prot Net Lata ofand
ProtitR200,000 Iata
capitals
the A/c A/c Ac when ended interest Each
are
Z of and prior enitled 4.00,000p.a
are B of & is of and amoACCOUNTI
unted NG
C profit and after
and were sharing
balances balances
are balances Profits
are capitals 30,800.
to p.a.
onpartner partners
Proñt
Loss toafter ainterest and partnersina Pr ofitentitled
:
Ls for pa. ar Capital Profit los
partners AcvntR1s7.H0 , to
on 31st together
C: partners
Ist
fluctuating:
:Y:Y*12,250
:Y*25,000
fixed20,000.
March,
capitals
is
entitled with
Appropri
l.60.,000 acal
4
ti o c
nul at ion deducing TR0.000
commingssion
chargi on Anpropration
his fim
As h a the toand
vaar a a Appropriation ?
5,000 April, ratio
{37,250 :
fluctuating. are
Prepare
Capitals
Fixed TS,600 coemmindecdosmomi0nNon shanng Q.0 0. FOR
ofal interetcapital.
and with capitals
2022.
(Dr.). firm a the
in of
partners (Cr.); (Cr.);(Cr.);
Partner's
2023
salary
commission 9%of
before
a to and
Account B.
rSpctivelysharing Account.
interest 8%
commissions.
of f B proits
Com miio nand
Account :*1,3,600.
Slst Manager PAR
on ofentitled prohts Lata
Theirhaving
According Z*33,550 Z Capitalmaking aft
and
e r
p.a.
25,000 2,40,000; net
capi ta
on
l
is
on March, S%
ot of
8%in to
and ) and entitled is
TNERSHIP
Current
capitals not
is 18,550
15,000
Z
charging
interest
of
6%onand
capital
The profit
losSes
1,71,200.]
a
Ist or 2023 of 1.01.400.]
of t
net net ratio
he
manager
Capital
to given Accounts an y Commission was
remainincommi
g ssion b ut Apr il , FIRAMS
in amountedprotitproftit of is
Account (Cr.)]) (Cr.) (Cr.)
the of in of Net ofhi15,s 000 profit to
partnership*2,00,000; the the his cap1tal. 6,00,000. for 2022. before the before l:2. 10 %
Accounts, a
balances question, :()above Profit
commission. afte r Commission.
FUNDAMENTALS
when respectively to the after
charging ofEachisratio 5,40,000. to Asha{50,000, of
mentionedremaining is Z
of2.,
10% chargingcharging
deed2,00,000
were the BR48 deductingyear partner is a nof
profits capitals entitled entitled
ended on
the A: The 0n0 0%
on any net her any ie,

March,2:3:5.
respectively Hints : loan. sharedeGHally.be
p7,rof7it0,000 fiZ10,
rm. charpas ging fol ows parwas tncrs
Case
2022, 13.4,
0.
(iii)
IAns,Prepare (v) Interest(iv)on(ii) (ii) {) The eciely
/10th Interest Lata
Interest 2023 1Lata Hint: sharing [Ans. 2,00,00000,000, necessary
t The
1
Q.
.
[Ans.
prfiromfit ning
any
Z60,0(a00) also
The (c) Next(b)the PARTNERSHI
ACCOUNTING P
capitals.fiTrhest
(b) (a)
If If in to
On
(ii) (i) Share
the
736,000
to
terms
sharing
they agreement,
In
Balance
theof
but Profit
and on Share 4,
eRemai entitled were
the the the the Ist Z16,000.
and
BTransferInterestInterest
Profit theof and on get on of absence ratio. the and 8,00,000 B Journal the ofmade 4:3:1. 1,00,000 in worpartknierng cntitled FIRMS FOR
of carned and 38,500.]a n d of toa
lossprofits partnership partners ls t
following firm. July, C to on on Profit
distributable drawings
Mamta of salaryCapital
Mamta´s a
proitsMamta CapitalPrepare
of Loss Profit above profits a
salary to
before Drawings Loan
and December C entry
Show 2021, are General a and
entered : in interest
before Lata :Loss is Account items. to
of profit asare partner's could A ofproportion
interest cases the partners 5,00,000 {91,000;
for
wil L0an to are be of
A Reserve Appropriation 48,000. 2,500 be Lat a Alcs ratio
interest wil 1,00,800 be at allowed asof partners 2022 apportionmentinto Prepare2,80,000 shared 6,000 on
distribution :
and calculated profit partners
account
10 % A not for
be follows:
*2,26,440 Interest of capital
for sharing B calculated per 12,53,000, Capital agree threspectively. e partnership
C B the equally.
the for granted wi l should and with to per
and month.(@7%
of yearadvanced 78,500 for
their quarter.
the be on upon Profit the FUNDAMENTALS @
year of the
at
Account. beannum.80,000
Mamta per8% Mamtcapitals
a loan A/cs
ended
year 10% 6% before of 10%
for the year
amounted profits/losses loansprofits of anp.a. transferred p.a. BE10,53,000 is and onandprofits. &
amounted net
average 43,200.] for allowing 30%. to rate
Loan31.3.2023 I,00,000
On lst C
Loss ended
The p.a.
ofand profit, the
of be
profits
Duri3,00,000
ng paid of lst April Appropriation being
B
to interest
A/cs.
*7,500. to for losses
2,00,000 to whole Jul y 3\st
ie,period General
Drawings
interest the @6% and by 2022
the disclosed way were the
7,500. year 10% of year. C7,53,000.] p.a. on 2022, March,
and in
of 6
year and and loans of with to
the months. Reserve. being
Lata on loans B Account 2023 be
ended
1,00,000 ratio
1,60,000 ended
partner's2,00,000 profit profit
a advancedcapitals
divided
and
to before
Ist 3 of
1.121
= 31l st wil the of the and
of as
 ACTOUNTING LOR PAR TNERSHIP FIRMS FUNDAMENTALS 1 123
Wint. Interest on A's Loan will not be crcdited to his Current Account. it will be credited
L0an Ae.
(ohis
Q. 16. Radha and Rukmani are partners in afirm with fixed capitals of 2,00,000
and 3,00,000 respectively.
They share profits in the ratio of 1: 2. Both partners are entitled to interest on
capitals a 8% per annum. In addition, Rukmani is entitled to asalary of 20,000 per
month. Business is being carried from the property owned by Radha on a yearly rent
71,20,000. Net Profit for the year ended 3Ist March 2022 before providing for rent
of
was 5,50,000.
You are required to draw Profit &Loss Appropriation Account for the year ended
31stMarch, 2022,
[Ans. Share of Profit transferred to Radhas Current A/c 50,000 and Rukmani's
CurrentAe1,00,000.]
0. 17. Pnd are partners sharing profits and losses in the ratio of 60:40. On Ist
capitals were :P-5,00,000 and Q3,00,000. Duringthe year
Apkil,2022,their 2023, they earned a profit of 7,60,000 before taking into account
ended 31st March,
any ofthe following
terms of partnership :
p.a.
() Interest on the capital is to be charged (@ 8%
turnover.
(i) P will get commisson (@) 3% on
month.
(ii) Qwillget a salary of ?5,000 per of interest, salary and
() Owill get commission of 5% on profits after deduction
commission (including his own commission). of his premises by the
month for the use
(v) P is entitled to a rent of {20,000 per
firm.
drawings for the year were :P-740,000 and O30,000. Turnover
Partner's
?20,00,000. After considering the above factors, you are required to
for the year was Account and the Capital Accounts of the
loss Appropriation
prepare the Profit and
PartnerS.
Profit P ?1,92,000 and 1,28,000. Balance of Capital A/cs P
[Ans. Share of
7,52,000 and 4,98,000.] 2,40,000 =
Credited to P & L Appropriation Ae:7,60,000 - Rent
Hints : (i) Net Profit
75,20,000
5
(ii) Q'sCommission 105 of 3,36,000
Payable Account.
Rent willbe credited to Rent
profits and loss in the ratio of their capitals
and B are partners sharing partrnership
18,/A
4,00,000 respectively on lst April 2021. The
whidh wefe 6,00,000 and
deed provides that: 20,000 each;
monthly salary of
() Both partners will get
Interest on capital willbe allowed (@ 8% p.a.; firm.
(ii)
$24,000 for the use of his property by the
quarterly rent of
(iüi) A will get a
 ACCOUNTING FOR PARTNERSHIP FIRMS -
x . 1 4and1B granted loans of1,00,000 and FUNDAMENTAIs
750,000
the year ended 31st March 2022, the firm incurred respectively
a loss of to
17250
l A)ustment is made as per partnership deed.
Pyr n account showing the distribution of profit/\oss.
(Ans. Share ofLoss : A 12,000 and B 48,000.]
mt: Salary to Partners and interest on capitals will not be provided and P& LApp. A/c will
not be prepared since the firm has sufferred loss.
19) Aand B are partners in a firm sharing profits in the ratio of1:2. Their
nrtalson Ist April 2021 were 74,00,000 and 6,00,000 respectively. As per
partnership deed, A is to get a monthly salary of 15,000 and interest on capitals is to
be provided @ 10% p.a. and charged on drawings @ 12% p.a.
During the year A
withdrew 30,000 and B withdrew R50,000.
The firm incurred a loss of 760,000 during the year ended 3Ist
March, 2022
before above adjustments. You are required to prepare an
account showing the
distribution of profit/loss.
[Ans. Share of Loss A 18,400 and B F36,800.]
Note: Although Profit & Loss
Appropriation Alc is not prepared in case of loss, it will be
prepared this question because interest on drawings is to be credited to this
in
account.
0. 20. Xand Yare partners in a firm sharing profits and
losses in the ratio of 3:2
with capitals of 10,00,000 and 5,00,000
they are to be allowed interest on capital @respectively.
As per the partnership deed,
8% p.a. The net profit for the year ended
31st March, 2023 before providing for interest on capital
the distribution of profit. amounted to 45,000. Show
[Ans. Interest on capital allowed to X30,000 and
Y15,000.]
Interest on Drawings
0. 21 (A). Mr. Ashok Gupta is a partner in a
firm. He withdrew the following
amounts during the year ended 3Ist March, 2022 :
April 30
 Hint : Interest On Capital wilT be rCCofdO
againstprofits.
3s. Lalan and Balan were partners in a firm sharing profits in the ratio of3 2
2.00.000
Their fixed capitals on lst April, 2021 were : Lalan 1,00,000 and Balan
They agreed to allow interest on capital @12% per annum and to charge on drawings
OI5% per annum. The firm earned a profit, before all above adjustments, of 30.000
for the year ended31st March, 2022. The drawings of Lalan and Balan during the year
were 3,000 and 5,000 respectively. Showing you calculations clearly, prepare
Profit and Loss Appropriation Account of Lalan and Balan. The interest on capital will
be allowed even if the firm incurs a loss.
JAns. Net Loss transferred to Lalan's Current Account 3,240 and Balan's
Current Account 2,160.]
O. 39. On 1st April, 2021 X, Y and Z started a business in partnership. X
contributes 90,000 at first but withdraws 30,000 at the end of six months. Y
introduces 75,000 at first and increases it to 90,000 at the end of four months, but
withdraws 30,000 at the end of eight months. Z brings in 75,000 at first but
increases it by 60,000 at the end of seven months.
During the year ended 31st March, 2022, they make a net profit of 42,000. Show
how the partners should divide this amount on the basis of
by each partner. effective capital employed
[Ans. Profit sharing ratio ofX, Yand Z=3:3:4.]
 [Ans. Current A/cs of Anil &Sanjay will be deb
Aeof Sunil will be Credited by 20,000.]
Rare partners sharing profits in the ratio of 2:1:1. Their capitals
0.48. P. Qand
20,000 respectively. At the end of
as on 1st April, 2023 were 50,000, R30,000 and out that interest on capitals @ 12% p.a..
the vear ending 31st March, 2022 it was found
salaries to P, 500 per month and R 1,000per month were not adjusted from the
above adjustments.
profits. Show adjusting entry to be made in the next year for
respectively;
[Áns.Capital A/cs of Pand willbe debited by 3,000 and 3,900
and Capitat Acof R will be credited by F6.900.1 2:|
49 (. On Ist April, 2022 the Capitals of A and B were R4,00,000 and
Q.
#00,00erespectively. They divided profits in their capital ratio. Profits for the year
among the
ended 31st March, 2023 were 3,00,000 which have been duly distributed
books
partners, but the following transactions were not passed through the
(a) Interest on Capitals @12% p.a.
(b) Interest on Drawings A 12,000; B E10,000.
(c) Commission due to B 20,000 on a special transaction.
(d) Ais to be paid a salary of 50,000.
will not affect
You are required to pass a journal entry on 10th April, 2023 which
the P & L Alc of the firm and at the same time will rectify the errors.
B's Capital A/c Dr. 6,000
[Ans.
To A's Capital A/c 6,000]
ratio of
Q.49 (B),/Kumar and Raja were partners in a firm sharing profits in the
7\3. Thef fixed capitals were : Kumar 9,00,000 and Raja 4,00,000.
The
distributed
partnership deed provided for the following but the profit for the year was
without providing for:
(i) Interest on capital (@ 9% per annum.
(ii) Kumar's salary E50,000 per year and Raja's salary 3,000 per month.
The profit for the year ended 31.3.2023 was 2,78,000.
 1.132 ACCOUNTING FORPARTNERSHIP FIRMS
Pass the adjustment entry.
FUNDAMENTALS
|Ans, Kumar's Current A/e Dr. 11,100
To Raja's Current AVc 11,1001
V/A, B and Care partners sharinp profits in the ratio of 2:2: 1. Their fixed
yapitals xere 4,00,000, T2,50,000 and I.00,000 respectively. Net profit for the yehs
eeg 31st March, 2023 an0unted to 2,20,000 which was distributed withou
providing for the following :
(7) Salary to B *S,000 p.m. and to CI0,000 per quarter.
() Interest on capital (@6% p.a.
()) Commission to Manager @ 10%afler ehargtng stchcommission.
Pass necessary rectifying entry. 42,000
Dr.
|Ans. A's Current A/e
To B's Curent A/c 9,000
To C's Current A/c 13,000
To Manager's Commission Outstanding A/c 20,000)
Q. 51. Suresh and Ramesh were partners in a firm sharing profits in the ratio of
3: 2. Their fixed capitals were : Suresh 9,00,000 and Ramesh 6,00,000. The
partnership deed provided for the following:
(i) Interest on capital (@ 5% per annum.
(ü) Z60,000 per annum salary to Suresh and salary 2,000 per month to
Ramesh. The profit earned by the firm for the year ended 31-3-2022 was
2,34,000.
The profits were divided equally without providing for the above.
Pass adjustment entry
[Aps Ramesh's Current A/c Dr. 33,000
To Suresh's Current A/c 33,000]
Q. 52/ A, B and Cwere partners in a firm. On 1-4-2022 their capitals stood at
4,00,096, 2,50,000 and 2,50,000 respectively. As per the provisions of the
patnership deed:
(a) C was entitled for a salary of R10,000 p.m.
(6)Partners were entitled to interest on capital at 5% p.a.
(c) Profits were to be shared in the ratios of capitals.
The net profit for the year ended 31.3.2023 of 73,30,000 was divided equally
without providing for the above terms.
Pass an adjustment entry to rectify the above error.
[Ans.
A's Capital Alc Dr. 5,000
B's Capital Alc Dr. 57,500
To C's Capital A/c
62,500]
0. 53. A, B and C were partners in a firm. Their capitals were A
I,00,000, B
2,00,000 and C 3,00,000 respectively on Ist April, 2021. According to the
bartnership deed they were entitled to an interest on capital @ 5% D.a. In addition A
 To A'sCapital Alc
0. 54.A, B and Cwere partners in a 55,700]
firm. Their partnership deed provided that the
profits shall be divided as follows
First Z60,000 in the ratio of 3:2:1;
Remaining profits willbe shared equally.
The profits for the year ended 31st March, 2022
were |.50,000 which had been
distributed among the partners. On Ist April, 202I their Capitals
RE3.00.000 and CI2,00,000. Interest on Capital was to be providedwere AZ4.00,000.
(a 8% p.a. which
was omitted to be provided before distribution of profits,
Pass necessary rectifying entry for the same.
[Ans. C's Capital A/e Dr. 8,000
To 4's Capital A/e 8,0001
O. 55. A, Yand Z are partners in a firm sharing profits and losses in the ratio
s:3:2. Their capitals (fixed) are 2,00,000; 1,50,000; ?1,25,000 respectively. For
the vear ended 3lst March, 2022 interest on capital wascredited to them (a 8% instead
of 10%.
Give adjusting journal entry.
JAns. X's Current A/c will be debited by 750; Yand Z's Current A/cs will be
credited by 150and 600respectively.]
0. 56. A, B and Care partners in a firm sharing profits and losses in the ratio of
4:3:3. Their fixed capitals were 1,00,000, 2,00,000 and 3,00,000 respectively.
Forthe year ended 31st March, 2022 interest on capital was credited to them @ 10%
instead of 9% p.a. Pass the necessary adjusting journal entry.
B'sCurrent A/c Dr. 200
[Ans.
C's Current A/c Dr. 1,200
To A'sCurrent A/c 1,400]
Note : Since the capitals are fixed, Current Accounts will be debited or credited.
withdrew
Q. 57. A, Band Cwere partners sharing profits in the ratio of1:2:3.A
15,000
75,000 every month, B withdrew 60,000 during the year andC withdrew 2021.
31st March
during each quarter. It was discovered that for the year ending
provision for interest
interest on drawings was charged @ 8% p.a. whereas there is no
entry.
on drawings in the partnership deed. Pass necessary rectifying
C's Capital Alc Dr. 1,200
[Ans. 1,200]
ToA's Capital A/c
Hint: Interest on each partner's drawings 2,400.
 To Rashmi'sCapital A/c 27,000]

Mohan, Vijay and Anil are partners, their capitals being 30,000,
60 (4). the drawings and
25]000 ayd 20,000 respectively. In arriving at these figures,been credited to the
profits forthe year ended, 31st March, 2021 724,000has already were 5,000
partners in the proportion in which they share profits. Their drawings
(Mohan); 4,000 (Vijay) and 3,000 (Anil) for the year ending 31st March, 2021.
Subsequently the following omissions were noticed and it was decided to bring them
into Account.
() Interest on Capital at 10% p.a.
(ii) Interest on Drawings Mohan 250, Vijay 200 and Anil 150.
Make the necessary journal entry and prepare Capital Accounts of Partner's.
[Ans. Opening Capitals Mohan 27,000, Vijay 21,000, Anil 15,000; Dr.
Anil's Capital by T550 and Cr. Mohan's Capital by 550. Adjusted Capital accounts
balances Mohan 30,550; Vijay 25,000; Anil Z19,450.]
Q. 60 (B). The capitals of 4, Band Cstood at T20,000, T15,000 and 10,000
respectively after the necessary adjustment in respect of drawings and net profits.
Subsequently, it was discovered that interest on capital at 10% p.a. and interest on
drawings 130, 90 and 50 respectively have been ignored. Profit of the year already
adjusted was 10,000. Drawings of the partners were 1,000, 800 and 500
respectively. They share profits and losses in the ratio of 2: 1:1. Give necessary
journal entry to rectify the accounts.