1. a) A B and C are partners sharing profit and losses in the ratio of 2:2:1 respectively. For the year ended 31st December 2002 their Capital accounts remained fixed at the following: A 600,000 B 400,000 C 200,000 They have agreed to give each other 10% per annum interest on capital accounts. In addition partnership salaries of sh 300,000 for B and sh 100,000 for C are to be charged. The net profit of the partnership before taking any of the above into account was sh 2,520,000 Required: Draw up the profit and loss appropriation account the partnership for the year ended 31 December 2012. (7 Marks) b) Discuss the limitations of ratios as a proforma indicator of a business entity. (7 Marks) c) Outline the users of accounting information and their information needs. (7 Marks) d) With examples discuss i) Direct cost. (4 Marks) ii) Indirect cost. (4 Marks) iii) Share premium.