Frame and French are in partnership sharing profits and losses in the ratio ³/5 : ²/5, respectively. The following is their trial balance as at 30 September 20X5.

Required:

Prepare a trading and profit and loss appropriation account for the year ended 30 June 20X9, and a balance sheet as at that date.

(a) Stock, 30 June 20X9, £74,210.

(b) Expenses to be accrued: Office Expenses £215; Wages £720.

(c) Depreciate fixtures 15 per cent on reducing balance basis, buildings £5,000.

(d) Reduce provision for doubtful debts to £1,250.

(e) Partnership salary: £30,000 to Frame. Not yet entered.

(f) Interest on drawings: Frame £900; French £600.

(g) Interest on capital account balances at 5 percent.

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Buildings (cost £210,000) Fixtures at cost Provision for depreciation: Fixtures Debtors Creditors Cash at bank Stock at 30 September 20X4 Sales Purchases Carriage outwards Discounts allowed Loan interest: P Prince Office expenses Salaries and wages Bad debts Provision for doubtful debts Loan from P Prince Capitals: Frame French Current accounts: Frame French Dr £ 160,000 8,200 61,400 6,130 62,740 210,000 3,410 620 3,900 4,760 57,809 1,632 Cr £ 4,200 26,590 363,111 1,400 65,000 100,000 75,000 4,100 1,200