Self-test Black and Whyte share profits in the ratio of 7:3. The balances on the capital accounts at 1 June 2009 were:

Black 300,000 Whyte 180,000 The partners’ current account balances (credits) as at 1 June 2009 were:

Black 20,000 Whyte 14,000 During the year ended 31 May 2010 the partners made the following drawings from the partnership bank account:

Black Amount Date of drawing

£12,000 31 July 2009

£10,000 30 November 2009

£12,000 31 March 2010

£13,000 31 May 2010 Whyte Amount Date of drawing

£6,000 31 July 2009

£2,000 30 November 2009

£6,000 31 March 2010

£3,000 31 May 2010 Interest is charged on drawings at the rate of 10 per cent per annum, while interest of 6 per cent per annum is allowed on capital accounts and credit balances on current accounts. Whyte is allowed a salary of £25,000 per annum.

The net profit of the partnership for the year ended 31 May 2010 is £126,700.

You are required to prepare the partnership appropriation account for the year ended 31 May 2010.
You are also required to show the current account of each partner as at 31 May 2010.