J- Waite and p- Watcher’s trial balance as at 30 November 2005 is set out below.

1. Closing stock is £15,000.
2. Salaries are £18,000 for Waite and £16,000 for Watcher.
3. There is £300 owing for rent.
4. Depreciation for the year is £2,000 on land and buildings and £3,000 on motor vehicles. The business was started on 1 December 2004.
5. The split of profits is 3 Watcher: 2 Waite.
Required: Prepare the trading, profit and loss and appropriation account for year ended 30 November 2005 and the balance sheet as at 30 November 2005.

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Capital accounts: Waite 88,000 Watcher 64,000 Current accounts: Waite 2,500 Watcher 12,000 Drawings: Waite 13,300 Watcher 6,300 Land and buildings at cost 166,313 Motor vehicles at cost 65,000 Opening stock Debtors 9,000 12,000 Creditors 18,500 Bank 6,501 Electricity 3,406 Wages 14,870 Telephone 1,350 Rent and business rates 6,660