2. The following balances were extracted from the books of Lauren and Holly on 31 December 2012 after a full year's trading: S 8 500 Gross Profir General expenses 150 Rates 167 Discount received 29 Interest received 1 000 Loan 1 200 Capital: Lauren 5 000 Holly 3 000 Current Capital: Lauren 240 Dr Holly 444 Cr Drawings: Lauren 1 000 Holly 300 The Partnership agreement states: (1) Interest to be paid on capitals at 5% per annum. (2) Interest on drawings is charged at 2% per annum. (3) Lauren is to receive a salary of $300. Interest on the loan to the partnership is to be paid at 3% per annum. (5) Profits and Losses are to be shared in the ratio of capital contributed. Other Information: (1) Holly invested $2 000 in capital on 1 July 2012. (2) Rates $16 were owing at 31 December 2012. REQUIRED: (a) Prepare the Lauren and Holly capital accounts at the 31 December 2012. [3] (b) Prepare the Partnership Profit and Loss Appropriation Account for the year ended 31 December 2012. 19) (c) Prepare the partners current accounts at the 31 December 2012. [6] (d) Prepare the Capital Section of the balance sheet to show net assets at the 31 December, 2012 [2] TOTAL MARKS (201