Rajiv and Sanjeev were partners in a firm. Their partnership deed provided that the profits shall be divided as follows:

First Rs.   20,000 to Rajeev and the balance in the ratio of 4:1. The profits for the year ended 31st March, 2017 were Rs.   60,000 which had been distributed among the partners.

On 1-4-2016 their capitals were Rajeev Rs.   90,000 and Sanjeev Rs.   80,000. Interest on capital was to be provided @ 6% p.a. While preparing the profit and loss appropriation interest on capital was omitted.

Pass necessary rectifying entry for the same. Show your workings clearly.

Marks-4, CBSE:2017-18/Comp/Q-11

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