A, B and C are in partnership sharing profits and losses in the ratio 5:3:2 respectively. The following is the trial balance of the partnership as at 31st March 2017: Dr Cr Allowance for doubtful accts 1,000.00 Bank 7,000.00 Capital 1/4/2020 A, Capital 18,000.00 B, Capital 12,000.00 C, Capital 6,000.00 Current Acct 1/4/2020 A 1,000.00 B 5,000.00 C 3,000.00 Acct Receivable 23,000.00 Accounts Payable 37,000.00 Buildings 60,000.00 Motor vehicles 20,000.00 Acc Deprn-Buildings 4,000.00 Acc. Deprn-Motor vehicles 8,000.00 Staff Salaries 5,000.00 utilities 3,000.00 Sales 150,000.00 Selling Exp 15,000.00 Stock- opening 20,000.00 Purchases 93,000.00 Loan, B 10,000.00 Drawings A 2,000.00 B 3,000.00 C 4,000.00 255,000.00 255,000.00 Additional information: (i) The cost of stock as at 31/3/2017 was $30,000. Its net realizable value at that date was $38,000. (ii) Depreciation on fixed assets was provided on the following basis: Buildings : 2% per annum on cost straight line depreciation Motor vehicles : 20% per annum on reducing balance basis (iii) At 31st March 2017 an amount of $2,250 was owing for selling expenses (iv) Utilities were prepaid by $1,000 (iv) Utilities were prepaid by $1,000 (v) Provision for doubtful debts was to be made at 5% of debtors outstanding as at 31/3/2017 (vi) The partnership agreement covers the following terms: C is to be allowed a salary of $6,000 per month Interest of 10% is allowed on the capital account balances outstanding as at 1/4/2016 No interest is allowed on current accounts Interest at 5% is charged on drawings irrespective of when the drawings were made Interest of 10% is allowed on any loan made by the partners REQUIRED: 1.1) Prepare the income statement for the year ending 31 March 2017 (this must include the appropriation of profit statement 1.2) Prepare the balance sheet as at 31 March 2017