Albert and Berty are in partnership. They share profits and losses in the ratio 2:1 and prepare financial statements to 31 March. Their balances at 31 March 2014 were: Capital accounts $ 38 500 Current accounts $ 4 250 Cr Albert Berty 27 600 2 975 Cr On 1 April 2014 Clinton was admitted to the partnership on the following terms. 1 He introduced $100 000 capital in cash and it was agreed that he would receive the same level of profits as Bernard. The profit sharing ratio between Albert, Berty and Clinton would be 2:1:1 2. Goodwill was valued at $120 000 and it was decided that goodwill retained in the books of account. was not to be Each partner was to receive an annual salary of $30 000. 3. 4. Interest on capital was to be paid at 8% per annum. Interest at 6% per 5. No interest was to be charged on drawings up to $50 000. annum was to be charged on any additional drawings. For the year ended 31 March 2015: profit of $325 000 before adjusting for the following 1 The partnership made a items: A debt of $5000 which had been written off as irrecoverable in the previous year was recovered. A cheque for $15 000 received from a debtor in January 2015 was dishonoured and the debt is to be written off. During the year Clinton took a family holiday costing $2500. This was paid from the partnership bank account and shown as an expense Total drawings for the year were Albert $70 500; Berty $46 900; Clinton $34 750 2. Required: For the year ended 31 March 2015 Capital Accounts Profit and Loss Appropriation Account Current Accounts [7 marks] [10 marks] [8 marks] (a) (b) (c)