Field, Green and Lane are in partnership making up financial statements annually to 31 March. Owing to staff difficulties proper records were not maintained for the year ended 31 March 20X9, and the partners request your assistance in preparing the financial statements for that year.
The statement of financial position on 1 April 20X8 was as follows:

The accruals in the statement of financial position comprised: audit fee £600, heat and light £400 and advertising £125. The prepayment of £250 was in respect of rates.
A summary of the bank statement provides the following information for the year to 31 March 20X9.

The following items were paid from the takings before they were banked:
– Wages: cleaner £5 per week; van driver’s mate £10 per week
– Casual labour for the year: £555
– Paraffin for shop heating: £445
– Advertising: £75
– Sundry office expenses: £515
– Purchases for resale: £12,635
– Hire of delivery vehicle: £20 per week
– Partners’ drawings per week: Field £40, Green £30, Lane £30.
Additional information
1. The partners are allowed interest of 5 per cent per annum on their capital accounts.
2. Profits or losses are shared in the ratio Field 5, Green 3, Lane 2, with the proviso that Lane is guaranteed by Field an income of £3,000 per annum, excluding his interest on capital.

3. Certain goods had been appropriated by the partners during the year. The selling price of these goods was £460, allocated as follows: Field £235; Green £110; Lane £115.
4. Depreciation on non-current assets is to be provided at the following rates: fixed plant
5 per cent; motor vehicles 25 per cent; and fixtures and fittings 10 per cent; using the straight-line method.
5. Accrued charges for heat and light at 31 March 20X9 were £450.
6. Rates of £750 were prepaid at 31 March 20X9.
7. Your charges for the 20X8/X9 audit were estimated at £650.
8. At 31 March 20X9, inventories were £22,345, trade receivables £11,415, trade payables £5,920 and cash in till £100.

Required
a. Prepare the partnership’s statement of profit or loss, and appropriation account for the year ended 31 March 20X9.
b. Prepare the statement of financial position as at 31 March 20X9. (Movements in the partners’ current accounts should be shown on the face of the statement of financial position.)

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ASSETS Non-current assets Fixed plant Motor vehicles Fixtures and fittings Current assets Inventories Trade receivables Prepayments Cash Total assets OWNERS' EQUITY AND LIABILITIES Owners' equity Capital accounts - Field - Green - Lane Current accounts - Field - Green - Lane Current liabilities Bank overdraft Trade payables Accruals Total current liabilities Total capital and liabilities £ Cost 15,000 4,000 500 19,500 £ Ace depn 6,000 1,000 250 7,250 10,000 10,000 2,500 5,000 2,000 500 £ WDV 9,000 3,000 250 12,250 19,450 10,820 250 75 30,595 42,845 22,500 7,500 30,000 6,370 1,125 5,350 12,845 42,845