Miller, Morris and Mason are partners in the consulting firm of MMM Partners. The balance sheet of the partnership as at 30 June 2019 is set out below.

It was agreed that all profits should be divided equally between the partners. Business transactions for the year ending 30 June 2020 were as follows (ignore GST).

Inventory at 30 June 2020 was $45 000. Non‐current assets are depreciated at 10% p.a.

Required

(a) Prepare the income statement for the year ended 30 June 2020.

(b) Prepare the statement of changes in partners’ equity for the year ended 30 June 2020.

(c) Prepare the balance sheet as at 30 June 2020.

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CURRENT ASSETS Cash at bank Accounts receivable Inventory NON-CURRENT ASSETS Plant and Equipment Office furniture MMM PARTNERS Balance Sheet as at 30 June 2019 $30200 32600 46700 $109 500 88 400 34300 122 700 $232 200 CURRENT LIABILITIES Accounts Payable 22 600 EQUITY Partners' capital accounts: Miller 62000 Morris 62000 Mason 42000 166 000 Partners' retained earnings: Miller 16200 Morris 12800 Mason 14600 43 600 $232 200