Sarthaks Test
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A, B and C are partners in a firm. Net profit of the firm for the year ended 31st March, 2016 is Rs.30,000, which has been duly distributed among the partners, in their agreed ratio of 3: 1: 1 respectively. It is discovered on 10th April, 2016 that the under mentioned transactions were not passed through the books of accounts of the firm for the year ended 31st March, 2016. 

a. Interest on Capital @ 6% per annum, the capital of A, B and C being Rs.50.000; `40,000 and Rs.30,000 respectively. 

b. Interest on drawings: A Rs.350: BRs.250; CRs.150. 

c. Partnership Salaries: A Rs.5,000; BRs.7,500. 

d. Commission due to A (for some special transaction)? Rs.3,000. You are required to pass a Journal entry, which will not affect Profit and loss Account of the firm rectify the position of partners interest.

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Working note :

1. Calculation of interest on capital

2.interest on drawing

For A -Rs. 350

For B -Rs.250

For C- Rs.150

4. commission to A Rs. 3,000

5. Calculation of profit share of each partner profit avilabe for distribution 

=Rs.30,000- Rs.7,200+ Rs.750- Rs. 12,500 -Rs,3000=Rs.8,050

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