Sonu and Rajat started a partnership firm on April 1, 2017. They contributed Rs. 8,00,000 and Rs. 6,00,000 respectively as their capitals and decided to share profits and losses in the ratio of 3 : 2.
The partnership deed provided that Sonu was to be paid a salary of Rs. 20,000 per month and Rajat a commission of 5% on turnover. It also provided that interest on capital be allowed @ 8% p.a. Sonu withdrew Rs. 20,000 on 1st December, 2017 and Rajat withdrew Rs. 5,000 at the end of each month. Interest on drawings was charged @ 6% p.a. The net profit as per Profit and Loss Account for the year ended 31st March, 2018 was Rs. 4,89,950. The turnover of the firm for the year ended 31st March, 2018 amounted to Rs. 20,00,000. Pass necessary journal entries for the above transactions in the books of Sonu and Rajat.