Additional information. 1. Inventory/ stock on 31 December 2021 was P74 210. 2. Expenses accrued: Office P215 00, Wages P720. 3. Depreciation on fixtures is charged at 15% using reducing balance method, depreciate building by P5 000. 4. Reduce provision for bad debts to P1 250. 5. Partnership salary of P 3 000 for Frame has not yet been entered. 6. Interest on drawing Frame P900 French P600. 7. Interest on Capital is 5%. Required to Prepare: a) A trading and profit and loss appropriation account for the partnership for the year ended 31 December 2021. b) A Balance sheet/ statement of financial position for the partnership business as at 31 December 2021.

Frame and French are in a partnership business sharing profits and losses in the ration of 3/5 and 2/5 respectively. The following is their trial balance: The Trial balance of Frame and Frame partnership business as at 31 December 2021 DEBIT CREDIT Building (cost 210 000 160 000 Fixtures at cost 8 2000 Provision for depreciation Debtors/ trade receivables 61400 Creditors/ trade payables 26 590 Cash at bank 6 1130 Stock/ inventory at 1 January 2021 | 62 740 Sales 363 111 Purchases 210 000 Carriage outwards Discount allowed Interest on loan: Prince Office expenses Salaries and wages Bad debts Provision for doubtful debts 1 400 Loan from Prince 65 000 Capital : Frame 100 000 French 75 000 Current account: Frame French 1 200 Drawings: Frame 31 800 French Total 640 601 640 601