Selected accounts from the trial balance as at 30 June 2020 of the partnership of Amber, Ruby and Gemma are as follows.

End‐of‐period adjustments for the financial year ended 30 June 2020 have yet to be made as follows.

1. The partnership accountant has duly paid cash for Gemma’s agreed salary as part‐time manager ($32 000 p.a.) but was uncertain how to charge it.

2. Interest accrued to ABC Bank Ltd — $1800.

3. Partners have agreed to the following arrangements.

i. 6% p.a. interest on fixed capitals 

ii. 10% interest on total drawings for the year, which were as follows.

iii. 8% p.a. interest on advance from Amber 

iv. Profits/losses to be shared 2:2:1 by Amber, Ruby and Gemma respectively 

Required

(a) Complete the Profit or Loss Summary account for the year ended 30 June 2020.

(b) Prepare the Profit Distribution account.

(c) Complete each partner’s Retained Earnings account after all adjustments.

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Amber, Capital Amber, Retained earnings Ruby, Capital Debit Ruby, Retained earnings Gemma, Capital Gemma, Retained earnings Loan ABC Bank Ltd Gemma, Salary $32 000 Advance, Amber (repayable in November 2021) Profit or loss summary (after usual adjusting and closing entries for profit determination) Credit $102 500 26000 112800 32000 108000 24500 85 000 18000 148000