Ram and Shyam were partners in …
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Ram and Shyam were partners in a firm sharing profits in the ratio of 3: 5. Their Fixed Capitals were: Ram 5,00,000 and Shyam 9,00,000. After the accounts of the year had been closed, it was found that interest on capital at 10% per annum as provided in the partnership agreement has not been credited to the Capital Accounts of the partners. Pass a necessary entry to rectify the error.
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