Self-test X and Y prepare their annual accounts to 31 December. Interest on drawings is charged at 10 per cent p.a. while interest of 8 per cent p.a. is allowed on capital account balances. X receives a salary of £18,000 p.a. The profit or loss is shared in the ratio of 2:3.

At 1 January 2009 the balances are:

X Y Capital account £85,000 credit. £60,000 credit.

Current account £11,000 credit. £8,000 credit.

The net profit to 31 December 2009 is £80,000.

The partners’ drawings during the year were:

X Y

£12,000 £10,000 You are required to prepare the appropriation account as well as the ledger accounts of both partners’ current accounts.