Mendez and Marshall are in partnership sharing profits and losses equally. The following is their trial balance as at 30 June 20X9.

Required:
Prepare a trading and profit and loss appropriation account for the year ended 30 June 20X9, and a balance sheet as at that date.

(a) Stock, 30 June 20X9, £56,340.
(6) Expenses to be accrued: Office Expenses £96; Wages £200.

(c) Depreciate fixtures 10 per cent on reducing balance basis, buildings £1,000.

(d) Reduce provision for bad debts to £320.

(e) Partnership salary: £800 to Mendez. Not yet entered.

(f) Interest on drawings: Mendez £180; Marshall £120.
(g) Interest on capital account balances at 10 per cent.

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Dr Cr Buildings (cost 75,000) 50,000 Fixtures at cost 11,000 Provision for depreciation: Fixtures 3,300 Debtors 16,243 Creditors 11,150 Cash at bank 677 Stock at 30 June 20X8 41,979 Sales 123,650 Purchases 85,416 Carriage outwards 1,288 115 4,000 2,416 Discounts allowed Loan interest: King Office expenses Salaries and wages Bad debts Provision for bad debts Loan from J King Capitals: Mendez Marshall Current accounts: Mendez Drawings: Mendez Marshall Marshall 18,917 503 400 40,000 35,000 29,500 1,306 298 6,400 5,650 244,604 244,604