Ritesh and Hitesh are childhood friends. Ritesh is a consultant whereas Hitesh is an architect. They contributed equal amounts and purchased a building for Rs 2 crores. After a year, they sold it for Rs 3 crores and shared the profits equally. Are they doing the business in partnership? Give reason in support of your answer.
P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were Rs 2,00,000 and Rs 3, 00,000 respectively. The partnership deed provided for interest on capital @ 12% per annum. For the year ended 31st March 2016, the profits of the firm were distributed without providing interest on capital
Pass necessary adjustment entry to rectify the error.