Aura, Bonny & Nesta were in partnership as management consultants, sharing profits and losses in the ratio 3:2:1 respectively, after charging salaries of Ksh 180 000 Ksh 168 000 and Ksh 144 000 respectively and interest on capital at 15% annually.

On 1^st of January 2019, the net assets of the partnership were financed by;

	Aura	Bonny	Nesta	Total
Fixed capital	900 000	600 000	300 000	1 800 000
Current account	90 000	15 000	20 000	125 000

On 1^st July 2019 Otieno who up to this time was an employee of the firm, was admitted to the partnership, and Aura retired.

On this date goodwill of the partnership was agreed at Ksh 840 000, some assets were to be revalued upward by Ksh 332 000 and some old debts were recognized to be bad and were written off amounting to Ksh 170 000

Aura was to take with him his motorcar, which had a book value of Ksh 180 000 on 1^st January 2019, depreciation for six months to 30^th June 2019 was agreed at Ksh 18 000, and the motorcar was revalued upward by Ksh 38 000 (not accounted for above). The balance due to Aura would be transferred to a loan account repayable in 5 annual instalments at an interest rate of 18% per annum

Otieno was to bring Ksh 400 000 cash and his Motorcar at valuation of Ksh 180 000 into the business on 1^st July 2019 of which Ksh 300 000 is agreed as fixed capital.

Bonny, Nesta and Otieno would share profits and losses in the ratio of 4:3:3 after charging partners salary of Ksh 174 000 Ksh 154 000 and Ksh 134 000 respectively and annual interest on capital at 20%. Goodwill should be written off.

The net profit of the business for the year ended 31^st December 2019 was Ksh 945 000, before charging interest on Aura loan, which is deemed to have accrued evenly. Otieno salary as an employee had been properly treated.

The partners are allowed drawings semiannually at 5% of the fixed capital and Ksh 3 000 per month per partner, all drawing have taken on due date.

Required

1. Appropriation statement for the year ended 31^st Dec 2019

Partners’ capital account as at 31^st December 2019