Mudit, Sudhir, and Uday are partners in a firm sharing profits in the ratio of 3 : 1 : 1. Their fixed capital balances are ₹ 4,00,000, ₹ 1,60,000, and ₹ 1,20,000 respectively

Mudit, Sudhir, and Uday are partners in a firm sharing profits in the ratio of 3 : 1 : 1. Their fixed capital balances are ₹ 4,00,000, ₹ 1,60,000, and ₹ 1,20,000 respectively. Net Profit for the year ended 31st March 2018 distributed amongst the partners was ₹ 1,00,000, without taking into account the following adjustments:

a) Interest on Capitals @ 2.5% p.a.

b) Salary to Mudit ₹ 18,000 p.a. and commission to uday ₹ 12,000.

c) Mudit was allowed a commission of 6% of divisible profit after charging such commission.

Pass a rectifying Journal entry in the books of the firm. Show workings clearly.

[Ans.: Dr. Sudhir’s Current A/c by ₹ 6,000; Cr. Mudit’s Current A/c by ₹ 1,000 and Uday’s Current A/c by ₹ 5,000.]