Terry and Craig share profits in the proportion of one-third and two-thirds respectively. On 1 July 2025, the equity accounts stood as follows.

Partners were entitled to 8% interest on capital, and Terry, as manager, was entitled to a salary of \($60\) 000 p.a. During the year, Terry withdrew 24 000 in cash and Craig withdrew \($34\) 000. The profits for the year ended 30 June 2026 were \($136\) 000 before providing for interest on capital balances and for Terry’s salary.
Required

(a) Prepare the Profit Distribution accounts and partners’ Retained Earnings accounts for the year ended 30 June 2026.

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Capital Retained earnings Terry Craig $ 160 000 $ 240 000 50 000 64 000