Elisabeth and Philip are in partnership, sharing profits and losses in the ratio 2:1. The following trial balance was prepared as at 29 February 2008:

The following matters relate to the partnership accounts: a No interest is to be allowed on capital accounts. b Philip is entitled to a partnership salary of $5,290 but no entries have been made regarding this. c The partners' capital accounts are to remain fixed at the figures shown in the trial balance. All other transactions concerning partners are to be made in the partners' current accounts. d Stock at 29 February 2008 is $4,340. e Amount of $200 for wages and salaries accrued at 29 February 2008. f No provision is to be made for depreciation. g Amount of $50 for rates prepaid at 29 February 2008.

Required 1 Prepare a profit and loss and appropriation account for the year ended 29 February 2008.
2 Prepare a balance sheet as at 29 February 2008.

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Stock 1 March 2007 Purchases and sales Trade debtors and trade creditors Rent, rates and insurance Fixture and fittings Bad debts Partners' capital accounts as at 1 March 2007 Dr Cr '$ $ n 5,340 11,250 28,010 5,000 2,500 650 990 400 - Elisabeth 5,000 - Philip 3,000 Partners' current accounts, 1 March 2007 - Elisabeth 520 - Philip 410 Drawings - Elisabeth 3,100 - Philip 3,900 Bank 2,950 Cash 190 Wages and salaries 4,400 Discounts 750 400 General office expenses 920 39,840 39,840