1 1 2 Cart and Daniel are in partnership. Their partnership agreement provides that Daniel has a partnership salary of $3000 per annum Interest on capital is 6% per annum Interest on drawings is charged Residual profits / losses are shared 3:2 respectively. The partners have never kept full accounting records but provided the following information: Cash book summary for the year ended 31 December 2010 3 4 Balance b/d Trade receivables Cash sales Rent received 2178 44 049 332 467 7 000 Trade payables Wages Purchase of machine General expenses Drawings - Carl Drawings - Daniel $ 195 911 63 156 8 800 56 676 35 660 26 480 The assets and liabilities were: 1 January 2010 31 December 2010 Fixed capital account - Carl 100 00OCT 100 000C Fixed capital account - Daniel 70 000C 70 00OCT Current account - Carl 3210CT ? Current account - Daniel 1 304Cr ? Machinery (Net Book Value) 147 000 145000 Motor vehicle (Net Book Value) 16 000 8 000 Inventory 14 003 13 471 Trade receivables 317 183 Trade payables 4 872 5163 Wages accrued 612 938 Rent receivable accrued 500 Rent receivable prepaid 500 Additional information: 1. During the year, an old machine which had cost $10 000 was traded in for $3200 in part exchange for a new machine costing $12 000. The old machine had been depreciated by $6000 over its lifetime. 2. Interest on drawings for the year amounted to: Carl - $230 Daniel - $100 [Turn Over] REQUIRED (a) Prepare the income statement (trading and profit and loss account) and appropriation account for Carl and Daniel for the year ended 31 December 2010