A, B and C are equal partners in a firm. Their capitals on 1st January, 2016 were Rs 50,000, Rs 40,000 and Rs 30,000 respectively. After closing the accounts of the year 2016, it was found that according to the partnership agreement interest at 10% per annum on partners capital, a salary of Rs 3,000 per year to A and a commission of Rs 6,000 to C were not provided before distribution of profits. It was agreed among the partners to make the adjustment entry at the beginning of the next year rather than to alter the balance sheet. Pass one Journal Entry in the books of the firm showing the working of adjustment assuming that capitals are fixed.
