1. Mathew and Henry are in partnership sharing profits and losses in the ratio 1:1. Henry enjoys a salary of sh 5,000 per year. The net profit for the year ended 32 Dec 2010 and 2011 were sh 12,000 and sh 9,000 respectively.

Required:

Prepare the appropriation of profit and loss for these two years separately.

Describe five differences of receipts and payments A/C and Income and Expenditure A/C.