Rajiv and Sanjeev were partners in a firm. Their partnership deed provided that the profits shall be divided as follows:
First Rs. 20,000 to Rajeev and the balance in the ratio of 4:1. The profits for the year ended 31st March, 2017 were Rs. 60,000 which had been distributed among the partners.
On 1-4-2016 their capitals were Rajeev Rs. 90,000 and Sanjeev Rs. 80,000. Interest on capital was to be provided @ 6% p.a. While preparing the profit and loss appropriation interest on capital was omitted.
Pass necessary rectifying entry for the same. Show your workings clearly.
Marks-4, CBSE:2017-18/Comp/Q-11
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