Mudit, Sudhir and Uday are partners in a firm sharing profits in the ratio of 3:1:1. Their fixed capital balances are Rs. 4,00,000, Rs.1,60,000 and Rs.1,20,000 respectively.Net profit for the year ended 31st March, 2018 distributed amongst the partners was Rs.1,00,000, without taking into account the following adjustments:
(a) Interest on capitals @ 2.5% p.a.;
(b) Salary to Mudit Rs.18,000 p.a. and commission to Uday Rs. 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.
