Question

A, K and V are partners in a firm. Their Capital Accounts on 1st January 2018
stood at Rs. 1, 20,000, Rs. 60,000 and Rs. 60,000 respectively.
V advanced a sum of Rs. 20,000 to the firm on 1st Jan 2018 in the form of a loan.
The partners withdrew Rs.4, 000 each during the year.
The partnership deed provides for the following:
(i) Interest of 5% p.a. to be allowed on the loan taken from the partners.
(ii) Interest on Capitals to be allowed @10% p.a.
(iii) Interest on Drawings to be charged @5% p.a.
(iv) K to be allowed an annual salary of Rs.5, 000.
(v) Profits and Losses to be shared in the ratio 5:3:2.
Ignoring all the terms of the deed, the Net profit of Rs.90, 000 for the year ended
31st December 2013, was divided equally among the partners.
Pass a Single Journal Entry to rectify the error.

Answer 1

Answer:

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