Kumar and Raja were partners in a firm sharing profits in the ratio of 7 : 3. Their fixed capitals were : Kumar ₹ 9,00,000 and Raja ₹ 4,00,000

Kumar and Raja were partners in a firm sharing profits in the ratio of 7 : 3. Their fixed capitals were : Kumar ₹ 9,00,000 and Raja ₹ 4,00,000. The partnership deed provided for the following but the profit for the year was distributed without providing for:

(i) Interest on capital @ 9% per annum.

(ii) Kumar’s salary ₹ 50,000 per year and Raja’s salary ₹ 3,000 per month.

The profit for the year ended 31.3.2023 was ₹ 2,78,000.

Pass the adjustment entry.

Ans.

Kumar’s Current A/c Dr. 11,100
To Raja’s Current A/c 11,100