Partnership John, David and Sue are partners in a retail business named Tristar Company. The partnership agreement states that theyshare profits and losses in the ratio 2:2:1. Additional information at 30 April 2011: Interest on capital is allowed at the rate of 4% per annum and interest is charged on drawings 1 Inventory was valued at $28 100. at the rate of 5% per annum on the balances at 30 April 2011. 2 General expenses, $4 200, were prepaid. The following balances were extracted from the books on 30 April 2011. 3 Rent, $2 500, was accrued. Capital accounts 4 Depreciation is to be charged as follows: John 40 000 David 35 000 Motor vehicles at the rate of 20% per annum using the diminishing Sue 25 000 (reducing )balance method Current accounts John 2 500 Cr Fixtures and fittings at the rate of 10% per annum on cost, using the David 1 500 Cr straight tline method. Sue 1 000 Dr Drawings 5 The provision for doubtful debts is to be maintained at 5% of trade receivables. John 10 000 David 10 000 6 On 30 April 2011 the partners agreed to allow Sue to reduce his capital balance Sue 12 000 by $10 000. The sum was transferred to his current account on that date. The transfertook place after calculating the interest on capital for the year. Premises 44 750 Motor vehicles (cost) 16 000 Fixtures and fittings (cost) 30 000 REQUIRED Provisions for depreciation Motor vehicles 3 200 (a) Prepare the income statement and appropriation account of Tristar Company for Fixtures and fittings 17 500 the year ended 30 April 2011. Trade payables 54 700 Trade receivables 45 000 (b) Prepare the statement of financial position (balance sheet) of Tristar Company Provision for doubtful debts 1 500 at 30 April 2011. Bank 7 560 Dr Purchases 111 200 Revenue (sales) 209 500 Returns outward 4 750 Inventory at 1 May 2010 30 650 Salaries and wages 42 100 Heat and light 3 890 General expenses 16 750 Discount received 5 300 Marketing expenses 12 050 Rent 7 500