Obama and Trump were both lecturers at a reputable institution in the United Kingdom, but decided to break away on agreement that they would form their own tuition Centre and operate it as a partnership business. Prior to commencement, they drew up a partnership agreement in which the following were agreed upon: (1) Capital contribution: Obama $150,000, Trump $225,000 (i) Interest on capital account balances 5% per annum (iii) Interest on drawings 6% per annum (iv) Profit and loss sharing ratio: Obama 40% Trump 60% (v) Trump would be entitled to a salary from inception of their trading, of $55, 000 per annum. Besides implementing the above five items, Obama and Trump had the following balances at the end of their first year of trading ending 31 December 2017: Invoices for tuitions (Sales revenue) 1, 652,250 Purchases of textbooks for students 875,490 Students' refund claims 2,400 Returns of text books to suppliers 990 Staff salaries 432,900 Rent and insurance of buildings for classrooms 15,000 Electricity 58,500 Bad debts written off during the year 3,450 Trade receivables 412,500 Trade payables 70,200 Furniture and fittings @ cost on 1 January 2017 186,000 Cash at bank (asset) 1,200 Drawings: Obama 51,000 Trump 60,000 The following further information is relevant: i) ii) Rent and insurance balance above includes a three months' insurance invoice paid to 28 February 2018 of $600 and rent covering a three months' period to 31 January 2018 of $2,250. Furniture and fittings are to be depreciated at 15% per annum straight line. Receivable allowance of $4,500 is required at 31 December 2017. Inventory of books at 31 December 2017 was $4,500. iv) v) All drawings were taken on 1 July 2017. Required: (a) Prepare a partnership statement of profit or loss and appropriation account for the year ended 31 December 2017 (15 mark). (b) Prepare partners' capital and current accounts in columnar form (5 marks). (c) Prepare a partnership statement of financial position as at 31 December 2017 (10 marks)