Parul, Agsa and Anshul are partners in a firm. Their Capital Accounts were ₹ 3,00,000, ₹ 1,50,000 and 1,50,000 respectively on 1st April, 2025.
Parul, Agsa and Anshul are partners in a firm. Their Capital Accounts were ₹ 3,00,000, ₹ 1,50,000 and 1,50,000 respectively on 1st April, 2025.
As per the provisions of the Partnership Deed:
(i) Anshul was to be allowed salary of 36,000 per annum,
(ii) Interest on capital @ 5% p.a. was to be allowed,and
(iii) Profit-sharing ratio was 2:2:1.
Ignoring the above terms, net profit of 1,80,000 for the year ended 31st March, 2026 was distributed among the three partners equally. Pass the Journal entries to rectify the errors.
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