Moon and Star are in partnership. The following are the additional information and extracts from the Trail Balance at 31 December 2020 and after the Gross profit had been calculated.

Additional information

? Gross profit for the year ended 31 December 2020 was shown in the Trading Account at $68,200.

? The insurance premium included $1,000 paid in advance for the year 2021.

? A debt of $300 which was included in the trade debtors is to be written off as bad debts.

? Rent of $200 was still unpaid on 31 December 2020.

? A provision for doubtful debts is to be maintained at 5% of trade receivable.

? Depreciation of furniture and fittings is to be provided at 5% on book value.

? Inventory held at 31 December 2020 was $15,000.

? Moon and Star will share their profits (or losses) in the ratio of 3:2 respectively.

Interest on capital at 5% is to be provided for each partner and Star is entitled to a salary of $8,000.

$ Capital accounts as at 1 January 2020 Moon 30,000 Star 20,000 Current accounts as at 1 January 2020 Moon 300 Debit Star 900 Credit Drawings: Moon 14,000 Star 11,000 Trade receivables 8,300 Trade payables 7,000 Furniture and fittings (Net book value) 36,000 Bank 20,000 Provision for doubtful debts 300 General expenses 4,000 Insurance 5,800 Rent 12,000