The following information summarises the latest set of final accounts of Worky Tout & Co., a partnership.

(a) Prepare, in as much detail as possible, the Trading and Profit and Loss Account of Worky Tout & Co. for the year ended 30 April 2001 and a Balance Sheet as at that date. (All calculations should be made to the nearest $000.)

The following information is available for Zenapod, a similar business, for the year ended 30 April 2001.

(b) Compare the performance of Worky Tout & Co. with that of Zenapod. Indicate the ratios which show that one business is more efficient than the other. Your answer should be in sentence form with supporting figures.

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At 30 April 2001 Stock $45 000. (This was 50% more than the stock at 30 April 2000.) For the year ended 30 April 2001 Stockturn 12 times Gross profit margin 40% Net profit margin 18% Fixed asset turnover 3 times Average time taken by debtors to pay: 36 days (based on a year of 365 days). Average time taken to pay creditors: 40 days (based on a year of 365 days). The current ratio is 3 : 1. The only current assets of the firm consist of stock, debtors and balance at bank. Partners' drawings for the year $125 000. All sales and purchases were on a credit basis.