B, C, and D are in partnership and share profit and losses in the ratios 4:1:3 respectively. Their trial balance as at 31 December 2020 was as follows:

Draw up a set of financial statement for the year ending 31 December 2020. The following notes are relevant at 31 December 2020.

1. Inventory 31 December 2020 $74,223
2. Business rates in advance $200; inventory of postage stamps $68
3. Increase allowance for doubtful debts to $1,400
4. Salaries: C $18,000; D $14,000. Not yet recorded.
5. Interest on drawings: B $300; C $200; D $240.
6. Interest on Capitals at 8 per cent.

7. Depreciate Computers $2,800; Office equipment $1,100.

Required: Prepare income statement

B, C, and D are in partnership and share profit and losses in the ratios 4:1:3 respectively. Their trial balance as at 31 December 2020 was as follows: Dr Cr. Capital accounts: 60,000 10,000 30,000 5,940 2,117 9,618 334,618 ce D Current accounts: Be Ce De Sales Return inwards Purchases Inventory Carriage inwards Discount allowed Salaries and wages Bad debts Allowance for doubtful debts General expenses Business rates Postage Computers at cost Office equipment at cost 10,200 196,239 68,127 3,100 190 54,117 1,620 950 1,017 2,900 845 8,400 5,700 3,600 2,900 36,480 Provision for depreciation: Computers Office equipment Accounts payable Accounts receivable Cash at bank Drawings: D 51,320 5,214 39,000 16,000 28,000 494,106 494,106