A and B are in partnership sharing profits and losses 3:2. Under the terms of the partnership agreement, the partners are entitled to interest on capital at 5 per cent per annum and B is entitled to a salary of £4,500. Interest is charged on drawings at 5 per cent per annum and the amounts of interest are given below. No interest is charged or allowed on current accounts. The partners’ capitals at 1 July 2012 were: A £30,000 and B £10,000. The net trading profit of the firm before dealing with partners’ interest or B’s salary for the year ended 30 June 2013 was £25,800. Interest on drawings for the year amounted to A £400, B £300. At 1 July 2012, there was a credit balance of £1,280 on B’s current account, while A’s current account balance was a debit of £500. Drawings for the year to 30 June 2013 amounted to £12,000 for A and £15,000 for B. Required: Prepare, for the year to 30 June 2013:

(a) The profit and loss appropriation account.

(b) The partners’ current accounts.