Om and Shiv entered into a partnership on 1st April 2022 without any Partnership Deed.

They introduced capitals of ₹ 5,00,000 and ₹ 3,00,000 respectively. On 31st October 2022, Om advanced ₹ 2,00,000 as a loan to the firm without an agreement as to interest.

The profit and Loss Account for the year ended on 31st March showed a profit of ₹ 4,30,000, but the partners could not agree on the amount of interest on a loan to be charged and the basis of the division of profits.

Pass a Journal entry for the distribution of the profit between the partners and prepare the Capital Accounts of both the partners and Loan Account of Shiv.

Anurag Pathak Changed status to publish April 14, 2023