01. Joyce and Susan are in partnership sharing profits in the ratio of 30 and 70 per cent respectively. Their trial balance as at 31 December 2021 was as follows:

Dr

Shs.

25% motor

20% Office

Capital accounts: Joyce

'Susan B

Current accounts at 31.12.2020

Joyce

Susan

Drawings: Joyce

Susan B

Office equipment at cost B

Accumulated depreciation at 31.12.20203

Motor vehicles at cost B

Accumulated depreciation at 31.12.2020 B

- Inventory at 31 December 2020 |

Accounts receivable and accounts payable B

Cash at bankb

Cash in hand B

Sales

Purchases I

Salaries 1

'Office expenses \

Discounts allowed

16.000

17,500

9,200

3,600

21,400

38,410

41.940

2,118

317

136,680

27,400

2,130

312

313.407

Cr

Shs.

20.000

50,000

7,009

7,382

<743)

12,800

32.216

180 400

313,407

The following notes are applicable at 31 December 2021:

a) Inventory, 31 December 2021 Shs. 41,312.

1 19 150

' b) Office expenses owing Shs.240.

O Provide for depreciation: motor 25 per cent of cost, office equipment 20 per cent of

cost.

d) Charge interest on capital at 5 per cent. A We) Interest on drawings is charged as follows: Susan Shs. 300; Joyce Shs.200. A Required:

Prepare:

An income statement and an appropriation account for the year ending 31 December 2021.

A statement of financial position for the year ended 31 December, 2021.