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a Balance Sheet The following information relates to the first year operations of Casey and Datal partners. Casey and Dacal have been trading successfully in
a Balance Sheet The following information relates to the first year operations of Casey and Datal partners. Casey and Dacal have been trading successfully in their first year and have recorded a Net Profit of $600,000, for the year ended 30th September 2020. Their Partnership Agreement specifies that each partner is to receive 10% interest on their initial capital investment of $500,000, and salary allowances of $150,000 and $100,000 respectively. The partners salaries are to be treated as an allocation of profit. At the end of the first year - 30th September 2020, the trial balance of the business include the following balances $ $ Dr S Cr$ 600.000 28,000 Accounts Profit and Loss Account Retained Earnings Account - Casey Retained Earnings Account - Datal Capital Account - Casey Capital Account - Daval Drawings - Casey Drawings - Darah 60,000 500,000 500,000 3,000 4,000 Required: a. Prepare the Profit and Loss Appropriation Statement for the year ended 30 September 2020. b. An extract of the Balance Sheet as at 30 September 2020, showing Partners Equity. Profit and loss Appropriation Statement $ $
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