bank, Hillary thinks they out to take on new partner who could provide additional finance What method of finance do you think they should choose? Give reasons for your choice Question 5 Tara and Lee are in partnership sharing profits and losses in the ratio 3:2. The following is their trial balance as at 30 September 2012 160,000 8,200 61.400 4.200 26,590 6,130 62.740 363,111 Buildings (cost 210,000) Fixtures at cost Provision for depreciation: Fixtures Accounts receivable Accounts payable Cash at bank Inventory at 30 September 2011 Sales Purchases Carriage outwards Discounts allowed Loan interest: V. Jeni Office expenses Salaries and wages Bad debts Allowance for doubtful debts Loan from V. Jeni Capitals: Tara Lee Current accounts: Tara 210,000 3.410 620 3,900 4,760 57.809 1,632 1,400 65,000 100,000 75,000 4,100 1,200 Lee Drawings: Tara Lee 31,800 28,200 640,601 640,601 Required: Prepare an income statement and profit and loss appropriation account for the year ending 30 September 2012, and a statement of financial position as at that date. a) Inventory, 30 September 2012, 74,210. b) Expenses to be accrued: office expenses 215; wage 720. c) Depreciate fixtures 15% on reducing balance basis, buildings 5,000. d) Reduce provision for doubtful debts to 1,250. e) Partnership salary: 30,000 to Tara. Not yet entered. f) Interest on drawings: Tara 900; Lee 600. g) Interest on capital account balances at 5%. estion 6 k and Sheila are trading in partnership, sharing profits ar est at 5% per annum is allowed or charged on both the the current account balances at the beginning of the ye: the partne