Read the following and answer the questions below.

Roach and Salmon own a grocery shop. Their first financial year ended on 31 December 20X9.

The following balances were taken from the books on that date:

The firm's net profit for the year was £32,840.
Interest on capital is to be allowed at 10% per year.
Profits and losses are to be shared equally.

(a) From the information above prepare the firm’s appropriation account and the partners’ current accounts.

(b) If there is no partnership agreement, to which Act of Parliament do the partners then refer?

Transcribed Image Text:

Capital: Partnership salaries: Drawings: Roach - 60,000; Roach - 9,000; Roach 12,860; Salmon-48,000. Salmon 6,000. Salmon 13,400.