A, B and C are partners in a firm sharing profits in the ratio of 4:3:3.
Their respective fixed capitals on 31st March,2020 were Rs1,20,000; Rs1,80,000 and Rs2,40,000.
On 1st October,2019, A withdrew Rs50,000 from his capital in addition to Rs30,000 against profits.
After closing the books on 31st March,2020, it was discovered that interest on capital and interest on drawings @12%p.a. was not accounted for.
their drawings were, A Rs30,000; B and Rs25,000 and C Rs12,000.profit for the year was 1,00,000 pass necessary adjustment entry.
