Bemba and Tambala formed a partnership on 1 February 2022. The following information is available.

1. On 1 February 2022 Bemba contributed K90 000 capital and Tambala contributed K60 000. On 1 August 2022 Bemba contributed a further K10 000 capital. Interest on capital is allowed at the rate of 3% per annum.

2. Tambala was to be entitled to an annual salary of K9000 per annum for the first four months of the first financial year. After that date the salary was to increase to K12 000 per annum.

3. During the year ended 31 January 2023 Bembas drawings amounted to K9800 and Tambalas drawings amounted to K20 800.

4. Interest on drawings for the year ended 31 January 2023 amounted to K490 for Bemba and K1040 for Tambala.

5. Profits and losses are shared 2/3 to Bemba and 1/3 to Tambala.

6. On 1 February 2022 Tambala made a loan of K15 000 to the business. The loan is repayable on 31 January 2020. Loan interest of 4% per annum is to be credited to Tambalas current account.

7. The profit for the year ended 31 January 2023 (after loan interest) was K27 920.

Required

(i) Prepare the profit and loss appropriation account for the year ended 31 January 2023

Bemba and Tambala provided the following information on 31 January 2013

K

Premises at book value 95 000

Machinery and equipment at book value 46 500

Inventory 28 750 Trade receivables 30 360

Trade payables 32 170

Other payables 1 390

Bank (debit) 5 870

(ii) Prepare the statement of financial position at 31 January 2023.