Selected accounts from the trial balance as at 30 June 2016 of the partnership of Amber, Ruby and Gemma are as follows:

	Debit				Credit
Amber, Capital Amber, Retained earnings Ruby, Capital Ruby, Retained earnings Gemma, Capital Gemma, Retained earnings Loan — ABC Bank Ltd Gemma, Salary Advance, Amber (repayable in November 2017) Profit or loss summary (after usual adjusting and closing entries for profit determination)		32 000			$ $	102 500 26 000 112 800 32 000 108 000 24 500 85 000 18 000 148 000

End-of-period adjustments for the financial year ended 30 June 2016 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: 

(a) 6% p.a. interest on fixed capitals. 

(b) 10% interest on total drawings for the year, which were: 

     Amber     $32 000 

     Ruby       28 000 

     Gemma   5 000 

(c) 8% p.a. interest on advance from Amber. 

(d) 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 2016.

B. Prepare the Profit Distribution account.

C. Complete each partner’s Retained Earnings account after all adjustments.