Piya and Bina are partners in a firm sharing profits and losses in the ratio of 3 : 2. Following was the Balance Sheet of the firm as on 31st March, 2016:

LiabilitiesAmount (Rs.)AssetsAmount (Rs.)
Capitals: Sundry Assets1,20,000
Piya (80,000)  
Bina (40,000)1,20,000 
Total1,20,000 Total1,20,000

The profits Rs. 30,000 for the year ended 31st March, 2016 were divided between the partners without allowing interest on capital @ 12% p.a. salary to Piya @ Rs. 1,000 per month. During the year Piya withdrew Rs. 8,000 and Bina withdrew Rs. 4,000. Showing your working notes clearly, pass the necessary rectifying entry.


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