Class work Tom Key, Tom Carr and Tom King are partners of a firm known as Tom & Tom. Their Partnership Agreement stipulated that: Profit and loss are to be shared equally ii Tom King is entitled to an annual partners' salary of $5,000. Interest on capital is to be allowed at the rate of 8% per annum. iv No interest is charged on drawings. Additional information: 1 Closing inventory is valued at a cost price of $8,000. i Goods worth $1,000 were withdrawn for own use by Tom Carr. This transaction was omitted from the books. iii Interest on loan from Tom King at 10% per annum had not been paid yet. lv Provision for depreciation of motor vehicles is to be maintained at 20% per year using the diminishing value method. Below is an extract of the Trial Balance of Tom & Tom on 31 December 20X7: Trial Balance Debit $ Credit $ 20,000 20.000 20,000 800 2,100 Capital Accounts Tom Key Tom Carr Tom King Current Accounts Tom Key Tom Carr Tom King Drawings Accounts Tom Key Tom Carr Purchases and sales Returns inwards and outwards Inventory (1 January 20X7) 1.200 1,000 5,000 46.500 400 92.800 500 6.000 15,000 3.100 1,900 3,000 1.000 2,400 450 2.000 Loan from Tom King (1 July 20x7) Carriage on purchases Carriage on sales Partner's salary: Tom King Commission expense and received Wages Cash in hand Cash at bank Motor vehicles Accumulated depreciation on motor vehicles Premises Accounts Receivable and Accounts Payable Discount allowed and received Rent Rates 4,600 20.000 4,000 12.000 2,100 80,000 10.000 5,300 4,800 2,050 195,000 195,000 REQUIRED: a Prepare the Trading, Profit and Loss and Appropriation Account for the year ended 31 December 20X7 b Prepare the Current Account of the partners. Prepare the Balance Sheet as at 31 December 20X7