On 30 September 1984, Alexander and Arnold completed their first year of trading in partnership. They shared profits and losses in the ratio Alexander f, Arnold f, and were entitled to 5 per cent p.a.

interest on capital. Arnold was also entitled to a salary of £1,490 per annum. They kept a debtors ledger, a creditors ledger for goods purchased, and a single entry record of all other transactions.

A summary of their cash transactions for the year ended 30 September 1984 is given below:

A summary of the partnership bank account for the year ended 30 September 1984 is also available:

T he partners also supplied the following details:
(i) Stock in hand at 30 September 1984 6,000 (ii) Debtors at 30 September 1984 5,400 (iii) Bad debts written off (already excluded from the debtorbalance) 200 (iv) Creditors at 30 September 1984 3,000 (v) Depreciation is to be provided for the van at 10 per cent on cost (vi) Sundry expenses accrued 150 Required:
Prepare the trading, profit and loss and appropriation accounts for the period ended 30 September 1984 and a balance sheet as at that date.

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Receipts Cash float for till 20 Cash sales 12,800 Payments Drawings Alexander 1,400 Arnold 1,200 Lodgements with bank 52,190 Receipts from debtors Creditors-goods purchased 2,600 44,900