Kavita and Pradeep are partners, sharing profits in the ratio of 3 : 2. They employed Chandan as their manager, to whom they paid a salary of Rs. 750 p.m. Chandan deposited Rs. 20,000 on which interest is payable @ 9% p.a. At the end of 2017 (after the division of profit), it was decided that Chandan should be treated as partner w.e.f. Jan. 1, 2014 with `1//6` th share in profits. His deposit being considered as capital carrying interest @ 6% p.a. like capital of other partners. Firm’s profits after allowing interest on capital were as follows:
`{:(,,,,("Rs.")),(2014,,"Profit",,59_(,)000),(2015,,"Profit",,62_(,)000),(2016,,"Loss",,(4_(,)000)),(2017,,"Profit",,78_(,)000):}`
Record the necessary journal entries to give effect to the above.

Answer

Kavita (Dr.) 300, Pradeep (Dr.) 200 and Chandan (Cr.) 500