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Piya and Bina are partners in a firm sharing profits and losses in the ratio of 3 : 2. Following was the Balance Sheet of the firm as on 31st March 2016:

Liabilities Assets
Capital A/cs:
Piya
Bina
80,000
40,000
Sundry Assets 1,20,000
  1,20,000   1,20,000

 

The Profits ₹ 30,000 for the year ended 31st March 2016 were divided between the partners without allowing interest on capital @ 12% p.a. and salary to Piya @ ₹ 1,000 per month. During the year, Piya withdrew ₹ 8,000 and Bina withdrew ₹ 4,000. Showing your working notes clearly. Pass the necessary rectifying entry.

[Ans.: Debit Bina’s Capital A/c and Credit Piya’s Capital A/c by ₹ 5,856]

Anurag Pathak Changed status to publish April 11, 2024
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