Ananya, Bhavi and Chandni were partners in a firm with capitals of ₹3,00,000, ₹2,00,000 and ₹1,00,000 respectively.

According to the provisions of the partnership deed:

(i) Ananya and Chandni were each entitled to a monthly salary of ₹1,500.

(ii) Bhavi was entitled to a salary of ₹4,000 per annum.

The profit for the year ended 31st March, 2022, ₹80,000 was divided between the partners in their profit sharing ratio of 3 : 3 : 2 without providing for the above adjustments.

Pass the necessary adjustment entry to rectify the above omissions in the books of the firm. Show your working notes clearly.

Marks-3, CBSE:2022-23/Zone-4/Set-1/Q-18*