Harris, Harmar and Higgins are partners in the consulting firm of Harris and Associates. The balance sheet of the partnership as at 31 March 2019 is set out

It was agreed that all profits would be divided equally between the partners. Business transactions for the year ending 31 March 2020 were as follows (ignore GST).

Accounts payable for office expenses at 31 March 2020 were $15 000. Furniture is depreciated at 15% p.a.

Required

(a) Prepare the income statement for the year ended 31 March 2020.

(b) Prepare the statement of changes in partners’ equity for the year ended 31 March 2020.

(c) Prepare the balance sheet as at 31 March 2020.

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CURRENT ASSETS Cash at bank Accounts receivable Advances receivables from clients NON-CURRENT ASSETS Professional library Office furniture HARRIS AND ASSOCIATES Balance Sheet as at 31 March 2019 $61 980 59 500 6 880 $128360 45 000 66 500 111500 $239 860 CURRENT LIABILITIES Accrued expenses (office) 15200 EQUITY Partner's capital accounts: Harris 51 450 Harmar 51 450 Higgins 44 100 147 000 Partner's retained earnings: Harris 29 500 Harmar 25 500 Higgins 22 660 77 660 $239860