Solution of Q 68 Fundamentals of Partnership Firm TS Grewal 2023-24 [CBSE]

A, B and C were partners. Their fixed capitals were ₹60,000, ₹40,000 and ₹20,000 respectively. Their profit-sharing ratio was 2 : 2 : 1. According to the Partnership Deed, they were entitled to interest on capital @ 5% p.a. In addition, B was also entitled to draw a salary of ₹1,500 per month. C was entitled to a commission of 5% on the profits after charging the interest on capital, but before charging the salary payable to B. The net profits for the year, ₹80,000, were distributed in the ratio of their capitals without providing for any of the above adjustments. Showing your workings clearly, pass the necessary adjustment entry.