kamau and kimono are in partnership sharing profits and losses in the ratio of 3:1. kimono receives a salary of kshs30,000 per annum. They both earn interest on capital at 12% per annum, based on their capital balances at the beginning of the year. Both the salary and interest occur evenly throughout the year. The following is the b/sheet of the partnership as at 31st dec 2010: kimono & kamaus b/sheet as at 31st dec 2010 Non-Current Assets Property, Plant & Equipment 400,000 Total Non-Current Assets 400,000 Current Assets Trade Receivables 30,000 Cash & Cash Equivalents 100,000 Total Current Assets 130,000 Total Assets 530,000 Equity & Liabilities Capital Accounts kamau 300,000 kimono 150,000 450,000 Current Accounts kamau 60,000 kimono 20,000 80,000 Total Equity & Liabilities 530,000 On the 30th April 2011, kamau decides to retire and agrees to leave the entire amount owing to him as a loan to the partnership bearing interest at 6% per annum which accrues evenly over the year. kimono and kamau agree that the goodwill of the business at that date amounts to kshs150,000 and that it should be brought into the books. John joins kimono in a new partnership on the 30th April 2011 and introduces capital of kshs100,000. They agree the following: (i) This new partnership is to share profits from 1st April in the ratio kimono 3: John 2. (ii) kimono salary stays the same and Johns salary is kshs24,000 per annum. (iii) kimono and John took drawings of kshs12,000 each on the 30th September 2011. (iv) They pay interest on drawings of 10% per annum. (v) The new partnership decided to leave the interest on capital at 12% per annum and have agreed that John can earn interest on his capital from the date of the new partnership. (vi) The profits, which occurred evenly throughout the year and before any adjustments, amounts to ksh150000 (vii) The new partnership agrees to eliminate the goodwill from their b/sheet. REQUIREMENT: For the year ended 31st dec 2011: (a) Prepare the partnerships appropriation account. (b) Prepare the partners current accounts