Jim and Peter are in partnership as lecturers and tutors. Interest is to be allowed on capital and on the opening balances on the current accounts at a rate of 5% per annum and is Jim to be given a salary of K18, 000 per annum. Interest is to be charged on drawing at 5% per annum (see notes below) and the profits and losses are to be shared Jim 60% and Peter 40%. The following trial balance was extracted from the books of the partnership at 31 December, 2017 K K Capital account - Peter Capital account - Jim Current account-Peter 50,000 75,000 4,000 5,000 Current account-Jim 17,000 20,000 Drawings-Jim Drawings-Peter Sales-goods and services Purchases of textbooks for distribution 541,750 291.830 330 800 Returns inwards and outwards 3,150 Carriage inwards 141,150 Staff salaries 2.500 1.000 1.500 10.000 9,500 1.150 74.000 Reni Insurance-general Insurance-public indemnity Compensation paid due to Benson error General expenses Bad debts written-off Fixtures and fittings-cost Accumulated depreciation Accounts receivables and accounts payables Cash Total 12,000 23.400 137.500 400 711,480 2.1.180 . An allowance for doubtful debts is to be created of Kl. 500 Insurances paid in advance at 31 December 2017 were general K50 professional indemnity K100 Fixtures and fittings are to be depreciated at 10% on cost Interest on drawing Peter K550.Jim Kl. os. Inventory of books at 31 December 2017 was Kl. 500. . Required: a) Prepare the income statement for the partnership for the year ending 31" December, 2017 b) Prepare the profit and loss appropriation account for the partners b) Prepare the following partners accounts in columnar formy: i) Capital accounts ii) Current accounts c) Prepare the statement of financial position for the partnership as at 31 December 2017 Jim and Peter are in partnership as lecturers and tutors. Interest is to be allowed on capital and on the opening balances on the current accounts at a rate of 5% per annum and is Jim to be given a salary of K18, 000 per annum. Interest is to be charged on drawing at 5% per annum (see notes below) and the profits and losses are to be shared Jim 60% and Peter 40%. The following trial balance was extracted from the books of the partnership at 31 December, 2017 K K Capital account - Peter Capital account - Jim Current account-Peter 50,000 75,000 4,000 5,000 Current account-Jim 17,000 20,000 Drawings-Jim Drawings-Peter Sales-goods and services Purchases of textbooks for distribution 541,750 291.830 330 800 Returns inwards and outwards 3,150 Carriage inwards 141,150 Staff salaries 2.500 1.000 1.500 10.000 9,500 1.150 74.000 Reni Insurance-general Insurance-public indemnity Compensation paid due to Benson error General expenses Bad debts written-off Fixtures and fittings-cost Accumulated depreciation Accounts receivables and accounts payables Cash Total 12,000 23.400 137.500 400 711,480 2.1.180 . An allowance for doubtful debts is to be created of Kl. 500 Insurances paid in advance at 31 December 2017 were general K50 professional indemnity K100 Fixtures and fittings are to be depreciated at 10% on cost Interest on drawing Peter K550.Jim Kl. os. Inventory of books at 31 December 2017 was Kl. 500. . Required: a) Prepare the income statement for the partnership for the year ending 31" December, 2017 b) Prepare the profit and loss appropriation account for the partners b) Prepare the following partners accounts in columnar formy: i) Capital accounts ii) Current accounts c) Prepare the statement of financial position for the partnership as at 31 December 2017