Mudit, Sudhir and Uday are partners in a firm sharing profits in the ratio of 3 : 1 : 1. Their fixed capital balances are ₹ 4,00,000, ₹ 1,60,000 and ₹ 1,20,000 respectively. Net profit for the year ended 31st March, 2018 distributed amongst the partners was ₹ 1,00,000, without taking into account the following adjustments:(a) Interest on capitals 2.5% p.a.;(b) Salary to Mudit ₹ 18,000 p.a. and commission to Uday ₹ 12,000.(c) Mudit was allowed a commission of 6% of divisible profit after charging such commission.Pass a rectifying Journal entry in the books of the firm. Show workings clearly.

Mudit, Sudhir and Uday are partners in a firm sharing profits in the r

1.	Mudit, Sudhir and Uday are partners in a firm sharing profits in the ratio of 3 : 1 : 1. Their fixed capital balances are ₹ 4,00,000, ₹ 1,60,000 and ₹ 1,20,000 respectively. Net profit for the year ended 31st March, 2018 distributed amongst the partners was ₹ 1,00,000, without taking into account the following adjustments:(a) Interest on capitals 2.5% p.a.;(b) Salary to Mudit ₹ 18,000 p.a. and commission to Uday ₹ 12,000.(c) Mudit was allowed a commission of 6% of divisible profit after charging such commission.Pass a rectifying Journal entry in the books of the firm. Show workings clearly.
Answer» Mudit, Sudhir and Uday are partners in a firm sharing profits in the ratio of 3 : 1 : 1. Their fixed capital balances are ₹ 4,00,000, ₹ 1,60,000 and ₹ 1,20,000 respectively. Net profit for the year ended 31st March, 2018 distributed amongst the partners was ₹ 1,00,000, without taking into account the following adjustments: (a) Interest on capitals 2.5% p.a.; (b) Salary to Mudit ₹ 18,000 p.a. and commission to Uday ₹ 12,000. (c) Mudit was allowed a commission of 6% of divisible profit after charging such commission. Pass a rectifying Journal entry in the books of the firm. Show workings clearly.