| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Capitals: | Sundry Assets | 1,20,000 | |
| Piya (80,000) | |||
| Bina (40,000) | 1,20,000 | ||
| Total | 1,20,000 | Total | 1,20,000 |
The profits Rs. 30,000 for the year ended 31st March, 2016 were divided between the partners without allowing interest on capital @ 12% p.a. salary to Piya @ Rs. 1,000 per month. During the year Piya withdrew Rs. 8,000 and Bina withdrew Rs. 4,000. Showing your working notes clearly, pass the necessary rectifying entry.
Solution
