Hawthorn, Privet \& Holly Statement of financial position as at 30 June 209 Hawthorn and Privet have carried on business in partnership for a number of years, sharing profits in the ratio of 5:2 after charging interest on capital at 4 per cent per annum. Holly was admitted into the partnership on 1 October 208, and the terms of the partnership from then were agreed as follows: 1. Partners' annual salaries to be: Hawthorn 3,900, Privet 3,300, Holly 3,200. 2. Interest on capital to be charged at 4 per cent per annum. 3. Profits to be shared: Hawthorn five-ninths, Privet two-ninths, Holly two-ninths. On 1 October 208 Holly paid 9,100 into the partnership bank and of this amount 3,500 was in respect of the share of goodwill acquired by her. Since the partnership has never created, and does not intend to create, a goodwill account, the full amount of 9,100 was credited for the time being to Holly's capital account at 1 October 208. The trial balance of the partnership at 30 June 209 was as follows: After taking into account the following information and the adjustment required for goodwill. 1. Inventory was 17,100. 2. Rates (320) and wages and salaries (510) were outstanding. 3. Telephone rental paid in advance was 30. 4. Irrecoverable debts allowance is to be adjusted to 2.00 per cent of trade receivables. 5. Depreciation is to be provided on furniture, fixtures and fittings at 5 per cent. Apportionments required are to be made on a time basis. Required: Prepare a statement of profit and loss for the year ended 30 June 209 and a statement of financial position as on that date