Azad and Benny are equal partners. Their fixed capitals are ₹ 40,000 and ₹ 80,000 respectively

Azad and Benny are equal partners. Their fixed capitals are ₹ 40,000 and ₹ 80,000 respectively. After the accounts for the year have been prepared it is discovered that interest at 5% p.a. as provided in the partnership agreement, has not been credited to the capital accounts before distribution of profits. It is decided to make and adjustment entry at the beginning of the next year. Record the necessary journal entry.

[Ans : Azad (Dr.) 1,000 and Benny (Cr.) 1,000]