Asha, Suman and Verka were partners in a firm, their capitals were ₹ 9,00,000, ₹ 7,00,000 and ₹ 4,00,000 respectively as on 1st April, 2022

Asha, Suman and Verka were partners in a firm, their capitals were ₹ 9,00,000, ₹ 7,00,000 and ₹ 4,00,000 respectively as on 1st April, 2022. Net Profit for the year ended 31st March, 2023 was ₹ 1,20,000 which was distributed without providing for interest on capital @ 8% p.a. as per partnership deed.

Pass necessary adjusting entry.

Ans:

Verka’s Capital A/c Dr. 16,000
To Asha’s Capital A/c 14,000
To Suman’s Capital A/c 2,000