Freddie and Roger have been trading in a partnership for a number of years. This year their business made a net proft of $150,000.

The Trial Balance for their business was as follows:

DR CR

$ $

Net Profit 150,000

Opening Capital

Freddie 35,000

Roger 25,000

Opening current acoount balances

Freddie 18,000

Roger 12,000

Drawings

Freddie 67,500

Roger 32,500

Net Assets 140,000

240,000 240,000

The Partnership agreement was as follows:

Interest Capital 9%

Salaries Freddie $24,000 pa

Roger $36,000 pa

Profit Sharing Ratio Freddie : Roger 3:2

Required:

(a) Share out the profits for the year according to the partnership agreement.

(b) Write up the capital and current accounts for the year.

(c) Draft a summary statement of financial position as at the year-end.