a). Michael and George have been in partnership for several years, sharing profits and losses in the ratio 3:4. At 1 January they had the following credit balances on their capital and current accounts:

Capital $ Current $

Michael 65,000 11,486

Donald 80,000 9,637

The partnership statement of profit or loss for the year to 31 December shows a net profit of $28,595, and the partners had made drawings of $16,500 each.

Calculate the balance of Michael's current account at 31 December.

b). At 31 October the balance on the payables control account in Mark's general ledger is $79,850 and the total of the list of balances on the personal accounts is $79,310. Mark has discovered that the difference is because a payment for $60 was entered correctly in the day book but was recorded as $600 on the supplier's account.

Calculate the correct value of creditors to be reported on Mark statement of financial position at 31 October.

c). Zeus Ltd declared a final dividend to its shareholders at the Annual General Meeting on 31.12.2017 of $1,200,000.

The amount was finally paid on 31.3.2018.

Prepare the Journal Entries for the declaration and distribution of the dividends in 2017 and 2018.