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: B 60,000 C 10,000 D 30,000 Current accounts: B 5,940 C 2,117 D 9,618 Sales 334,618 Return inwards 10,200 Purchases 196,239 Inventory 68,127 Carriage inwards 3,100 Discount allowed 190 Salaries and wages 54,117 Bad debts 1,620 Allowance for doubtful debts 950 General expenses 1,017 Business rates 2,900 Postage 845 Computers at cost 8,400 Office equipment at cost 5,700 Provision for depreciation: Computers 3,600 Office equipment 2,900 Accounts payable 36,480 Accounts receivable 51,320 Cash at bank 5,214 Drawings: B 39,000 C 16,000 D 28,000 494,106 494,106 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. 1. Compute the cost of sales (A) $139,243 (B) $193,243 (C) $199,339 (D) $131,175 2. Compute the gross profit (A) $199,339 (B) $139,243 (C ) $131,175 (D) $324,418 3. Compute total expenses (A) $64,771 (B) $64,701 (C) $66,404 (D) $68,128 4. Compute net profit/loss (A) $66,128 (B) $64,701 (C) $66,404 (D) $68,128 5. Compute Bs share of profit (A) $3,393 (B) $13,572 (C) $10,179 (D) $27,144 6. Compute Cs share of profit (A) $27,144 (B) $10,179 (C) $13,572 (D) $3,393 7. Compute Ds share of profit (A) $27,144 (B) $10,179 (C) $3,393 (D) $13,572 8. Compute Bs current account balance after the share of profit (A) -$14,988 (B) $14,988 (C) $7,957 (D) -$7,957 9. Compute Cs current account balance after the share of profit (A) $7,957 (B) -$3,876 (C) $3,876 (D) -$3,175 10. Compute Ds current account balance after the share of profit (A) $7,957 (B) -$3,876 (C) $3,876 (D) -$3,175 11. When there is no partnership agreement then profits and losses (A) Must be shared between the new partners in the old profit and loss ratio (B) Must be shared in the same proportion as capitals (C) Must be shared equally (D) Must be shared after adjusting for interest on capital