Suresh and Ramesh were partners in a firm sharing profits in the ratio of 3 : 2. Their fixed capitals were : Suresh ₹ 9,00,000 and Ramesh ₹ 6,00,000

Suresh and Ramesh were partners in a firm sharing profits in the ratio of 3 : 2. Their fixed capitals were : Suresh ₹ 9,00,000 and Ramesh ₹ 6,00,000. The partnership deed provided for the following:

(i) Interest on capital @ 5% per annum.

(ii) ₹ 60,000 per annum salary to Suresh and Salary ₹ 2,000 per month to Ramesh. The profit earned by the firm for the year ended 31.3.2024 was ₹ 2,34,000.

The profits were divided equally without providing for the above.

Pass adjustment entry

Ans:

Ramesh’s Current A/c Dr. 33,000
To Suresh’s Current A/c 33,000