Piya and Rosa were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$:5. Their fixed capitals were ₹ $\displaystyle 10,00,000$ and ₹ $\displaystyle 6,00,000$ respectively. After the accounts for the year were prepared, it was noticed that interest on capital @ $\displaystyle 8$% p.a., as provided in the partnership deed, was not credited to the capital accounts of partners before distribution of profits. Pass the necessary adjusting entry. Show your workings clearly.

Books of Piya and Rosa Journal L.F Debit Credit Date Par'culars Amount Amount (₹) (₹) Rosa’s Current A/c Dr $\displaystyle 32,000$ To Piya’s Current A/c $\displaystyle 32,000$ (Adjustment for omission of Interest on Capital) Working Notes:- Adjustment Table Par-culars Piya Rosa Dr(₹) Cr(₹) Dr(₹) Cr(₹) Interest on Capital to $\displaystyle 80,000$ $\displaystyle 48,000$ be credited Loss to be debited in $\displaystyle 48,000$ $\displaystyle 80,000$ the ra-o of $\displaystyle 3$:$\displaystyle 5$ Net Effect $\displaystyle 32,000$ $\displaystyle 32,000$