b) Prepare the Partners current accounts. [11 Marks]

c) List at least 5 terms of a partnership agreement. [5 Marks]

[25 Marks] Question 2 Debits Current Account X Current Account y Current Account Z Drawings X Drawings Y Drawings Z Fixed Properties Inventories Prepaid Tax Stationery on Hand Receivables N$ 17,750 15,120 26,600 16,800 15,000 23,200 55,500 17,500 2,300 100 48,880 Credits Bank Overdraft Capital X Capital Y Capital Z Payables Profit for the Year N$ 18,750 30,000 20.000 25,000 25,400 119,600 238,750 238,750 Additional Information The partnership agreement of X, Y and Z makes provision for the following: a. Capital will remain unchanged as follows: 30 000 Y 20 000 z 25 000 b. At the end of each year, the partners are charged interest on their drawings. For the year ended 31 December 2017, interest on drawings amounted to N$1 680, N$1 500 and N$2 320 for X, Y and Z respectively. c. Each partner receives interest on his capital at 10% per annum d. X and Y both receive salaries of N$4 000 per annum and Z gets N$3 000 per annum plus a bonus of N$5 000 for the year 2017 e. The rest of the profit should be divided in the ratio 6:3:1. Required: a) Prepare the Appropriation Account Statement [9 Marks)