Exercise 1

Enriques and Faraz are in partnership. They maintain fixed capital accounts, the balances of which are $30,000 and 20,000 respectively. Their partnership agreement provides that profits and losses are shared 2:1 after interest on capital is provided at eight per cent per annum. The profit for the year ended 31 March 2015 was $32,269.

Required

Prepare an appropriation account for the year ended 31 March 2015.