Gaynor, Henry and Irvin are in partnership, sharing profits and losses as follows: Gaynor 20 percent; Henry 40 percent; Irvin 40 percent. The following trial balance was extracted from the business's books of account on 31 August 2014, the last day of the partnership's financial year.

Additional information:

• Insurance: $3000 was prepaid at 31 August 2014.

• Wages and salaries due but unpaid totaled $12 000 at 31 August 2014.

• Depreciation should be provided on furniture and fittings at 20 percent per annum using the straight-line method.

• The provision for doubtful debts should be maintained at 5 percent of trade receivables. The partnership agreement includes the following terms:

• Interest should be charged on drawings. Interest charged on drawings for the year ended 31 August 2014 was: Gaynor $4000, Henry $5000, Irvin $7000.

• Gaynor is entitled to receive a partnership salary of $28,000 per annum.

• Partners are entitled to receive interest on capitals at the rate of 10 percent.

Prepare:

a. An income statement for the year ended 31 August 2014

b. An appropriation account for the year ended 31 August 2014

c. Partners' current accounts for the year ended 31 August 2014

d. A statement of financial position at 31 August 2014; this should show only the balances on the partners' current accounts at this date.

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Trial balance at 31 August 2014 Dr Cr $000 $000 Bank overdraft 12 Capital accounts: Gaynor 260 Henry 310 Irvin 370 Current accounts: Gaynor Henry 8. Invin Discounts 11 15 Drawings: Gaynor 44 Henry 61 Invin 52 Furniture and equipment Cost Provision for depreciation, 1 September 2013 220 66 General expenses 19 Gross profit 291 Inventory, 31 August 2014 68 Premises at cost 660 Provision for doubtful debts, 1 September 2013 Insurance 27 Trade payables 18 Trade receivables 40 Wages and salaries 139 1356 1 356