Illustration 2.7: P and Q were partners in a firm sharing profits in 3 : 1 ratio. Their respective fixed capitals were 10,00,000 and 6,00,000. The partnership deed provided interest on capital @ 12 % p.a. even if it will result into a loss to the firm. The net profit of the firm for the year ended 31st March, 2020 was 1,50,000. Pass necessary journal entries in the books of the firm allowing interest on capital and division of profit/loss among the partners.
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