Kavita, Meenakshi and Gauri are partners doing a paper business in Ludhiana. After the accounts of partnership have been drawn up and closed, it was discovered that for the years ending 31st March 2013 and 2014, Interest on capital has been allowed to partners @ 6% p. a. although there is no provision for interest on capital in the partnership deed. Their fixed capitals were Rs.2,00,000; Rs.1,60,000 and Rs.1,20,000 respectively. During the last two years they had shared the profits as under:
| Year |
Ratio |
| 31 March 2013 |
3 : 2 : 1 |
| 31 March 2014 |
5 : 3 : 2 |
You are required to give necessary adjusting entry on April 1, 2014.
