10.6 Mr Zed and Mr Wye are partners sharing profits j and

f. They allow for interest on capital account balances at 10 per cent and Mr Wye is paid a salary of £1,000 per month. The fol¬ lowing is summarised from their trial balance for the year to 31 December 20X5.

Dr Cr

£000 £000 Capital accounts:

Zed 150 Wye 140 Current accounts:

Zed 32 Wye 29 Drawings:

Zed 42 Wye 37 Sales 222 Cost of goods sold 80 Expenses 31 Cash 383 _ 573 573 Required:

Prepare a profit and loss, and appropriation account for the partners and prepare their current accounts in columnar form.