Able and Carter are partners in a business providing security products. The following information relates to their partnership.

Trial Balance (extract) as at June 30, 2022 - prior to appropriation of profits
	Debit	Credit
	$	$
Capital - Able		40,000
Capital - Carter		60,000
Current - Able		7,000
Current - Carter	5,000
Salary - Able	15,000
Salary - Carter	15,000
Advance to Able	12,000
Loan from Carter		10,000
Profit and Loss		114,000

Required:

1. Prepare the journal entries to record additional income and expense items at 30 June, close additional income and expense items to the profit and loss account and to complete the appropriation of profit to the partners
2. Prepare the following general ledger accounts for the year (after posting all the above journal entries):
   • Profit and Loss Account
   • Profit & Loss appropriation
   • Current Able
   • Current Carter

Additional Information:

• Carter contributed additional capital of $10,000 into the partnership on March 31^st 2022 which has been credited to his capital account.
• Carter withdrew $4,000 cash on 1 July 2021which has been debited to his Current account.
• Capital accounts are only used to record the permanent or fixed capital of each partner. Current accounts are used to record all other transactions affecting the equity of partners.

Extract of partners agreement.

• Interest on advance to partners is charged (in lieu of cash receipt) at 10% / annum. There has been no change to balance of the Advance to Able account during the year.
• Interest on loans from partners will be credited (in lieu of payment) at 7% / annum. There has been no change to balance of the Loan from Carter account during the year.
• Both Able and Carter are entitled to a annual salary of $20,000 each. Partners salaries are to be treated as a business expense.
• Partners shall be entitled to interest on Capital at the rate of 5% based on balances at the beginning of the year.
• Partners will be charged interest on drawings at 10% / annum.