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Piya and Bina are partners in a firm sharing profits and losses in the ratio of 3 : 2. Following was the Balance Sheet of the firm as on 31st March, 2016: Liabilities ₹ Assets ₹ Capitals: Sundry Assets 1,20,000 Piya 80,000 Bina 40,000 1,20,000 1,20,000 1,20,000 The profits ₹ 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 ₹ 1,000 per month. During the year Piya withdrew ₹ 8,000 and Bina withdrew ₹ 4,000. Showing your working notes clearly, pass the necessary rectifying entry.

Answer» Piya and Bina are partners in a firm sharing profits and losses in the ratio of 3 : 2. Following was the Balance Sheet of the firm as on 31st March, 2016:











































Liabilities Assets
Capitals: Sundry Assets 1,20,000
Piya 80,000
Bina 40,000 1,20,000
1,20,000 1,20,000



The profits ₹ 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 ₹ 1,000 per month. During the year Piya withdrew ₹ 8,000 and Bina withdrew ₹ 4,000. Showing your working notes clearly, pass the necessary rectifying entry.


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