41.9 Frame and French are in partnership sharing profits and losses in the ratio 3:2. The following is their trial balance as at 30 September 2016: Dr Buildings (cost 210,000) Fixtures at cost Provision for depreciation: Fixtures Accounts receivable 160,000 8,200 4,200 61,400 Accounts payable 26,590 Cash at bank 6,130 Inventory at 30 September 2015 62,740 Sales 363,111 Purchases 210,000 Carriage outwards 3,410 Discounts allowed 620 Loan interest: P. Prince 3,900 Office expenses 4,760 Salaries and wages 57,809 Bad debts 1,632 Allowance for doubtful debts Loan from P. Prince 1,400 65,000 Capitals: Frame 100,000 French Current accounts: Frame Drawings: Frame 75,000 4,100 French 1,200 31,800 French 28,200 640,601 640,601 Required: Prepare a statement of profit or loss and profit and loss appropriation account for the year ending 30 September 2016, and a statement of financial position as at that date. (a) Inventory, 30 September 2016, 74,210. (b) Expenses to be accrued: Office Expenses 215; Wages 720. (c) Depreciate fixtures 15 per cent on reducing balance basis, buildings 5,000. (d) Reduce provision for doubtful debts to 1,250. (e) Partnership salary: 30,000 to Frame. Not yet entered. (f) Interest on drawings: Frame 900; French 600. (g) Interest on capital account balances at 5 per cent.