Scot and Joplin are in partnership. They share profits in the ratio: Scot 70 per cent; Joplin 30 per cent. The following trial balance was extracted as at 31 December 20X7.

Required:

Draw up a set of final accounts for the year ended 31 December 20X7 for the partnership. The following notes are applicable at 31 December 20X7.

(a) Stock 31 December 20X7 £41,312.

(b) Office expenses owing £240.

(c) Provide for depreciation: motor 25 per cent of cost, office equipment 20 per cent of cost.

(d) Charge interest on capitals at 5 per cent.

(e) Charge interest on drawings: Scot £300; Joplin £200.

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Office equipment at cost Motor vehicles at cost Provision for depreciation at 31.12.20X6: Motor vehicles Office equipment Stock at 31 December 20X6 Debtors and creditors Cash at bank Cash in hand Sales Purchases Salaries Office expenses Discounts allowed Current accounts at 31.12.20X6 Scot Joplin Capital accounts: Scot Joplin Drawings: Scot Joplin Dr £ 9,200 21,400 38,410 41,940 2,118 317 136,680 27,400 2,130 312 17,500 16,000 313,407 Cr £ 12,800 3,600 32,216 180,400 7,382 7,009 50,000 20,000 313,407