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b) Ayako, Kamau and Omollo are in a partnership, sharing profits and losses in the ratio 3:2:1 respectively. Their partnership agreement allows the following: i)
b) Ayako, Kamau and Omollo are in a partnership, sharing profits and losses in the ratio 3:2:1 respectively. Their partnership agreement allows the following: i) Kamau and Omollo are to receive partnership salaries of sh 40,000 and sh 30,000 per annum respectively ii) Ayako is entitled to interest at 10% per annum on loan iii) Interest is allowed on fixed capitals at 8% per annum iv) Interest on drawings at 3% on amount advanced On 31st December, the following information was available. The net profit of the partnership at 31st December was sh222,000 after charging loan interest to Ayako. REQUIRED: i) A Profit and Loss appropriation account for the year ended 31st December 2022. (7marks) ii) Current Accounts in the columnar format of the partners showing the above transactions
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