Partnership

Barry and Bernice are operators of the Go Easy Club in Portmore, St. Catherine. They share profits in the ratio 3:2 respectively. On January 1, 2015 the following balances were extracted from the books of the partnership:

Detail	Current Account	Capital Account
Barry	500,000 (Cr)	2,500,000
Bernice	300,000 (Dr)	2,000,000

Extracts from the partnership records also revealed the following information:

The partnership profits for the financial year ending December 31, 2015 amounted to $5,600,000.

Interest on drawings is to be charged at 10% per annum, while partners are to receive 5% per annum on their capitals.

The partnership agreement provided that partners receive salaries as follows: Barry, $720,000 per annum; and Bernice $600,000 per annum.

Cash drawings for the year were: Barry $500,000 and Bernice $800,000.

Required:

The partners capital accounts as at January 1, 2015. (3 marks)

The partners current accounts as at December 31, 2015. (8 marks)

The Profit and Loss Appropriation Account for the period ending December 31, 2015. (9 marks)