66:- Pranav, Karan and Rahim were partners sharing profits in the ratio of 3:2:1. Their capitals were Rs 5,00,000, Rs 3,00,000 and Rs 2,00,000 respectively as on 1st April 2024. According to the partnership deed, they were entitled to an interest on capital at 10% p.a. for the year ended 31st March, 2025, profit of Rs 78,000 was distributed among the partners without allowing interest on capitals.
Pass the necessary adjusting entry and show the workings clearly.
Solution:-
NOTE :- IOC will not be granted as available proits are not enough. Profits will be now distributed in IOC ratio.