Question 1 A Anderson, B Bilal and C. Chaplin are in Partnership sharing Profits and Losses in the ratio of 5: 3:2 respectively. They own and manage a business selling educational toys, trading as ABC. The following trial balance has been extracted from their accounting records at 31 March 2017, N$ 000 N$ 000 Interest received 750 Capital Accounts - A Anderson 80,000 -B Bilal 15,000 - Chaplin 5,000 Carriage Inwards 4000 Carriage Outwards 12,000 Cash at Bank 4,900 Current Accounts 1 April 2016. A Anderson 1,000 B.Bilal 500 C.Chaplin 400 Current Account Drawings: A Anderson 25,000 B. Bilal 22,000 C. Chaplin 15,000 Motor vehicles at cost 80,000 Accumulated depreciation 1 April 2016 20,000 Equipment at cost 100,000 Office Expenses 40,400 Accumulated Dep.Equipment 1 April 2016 36,600 Purchase & Sales 225,000 409,000 Rent, Rates $Electricity 8,800 Inventory 1 April 2016 30,000 Accounts receivable & Payable 14,300 16,500 Allowance for doubtful debts 1 April 201 450 583300 583300 Additional information: 1. Inventory at 31 March 2017 cost N$ 35,000,000 2. Dep. On the Motor Vehicles 25% Diminishing balance method and Equipment at 20% on straight line method. 3. At 31 March 2017, Office Expenses of N$ 405 were payable (accrued) and Rent amounted to N$ 1500 had been paid in advance. Interest was charged on the debit balance of each partner's current accounts as follows: A. Anderson N$ 100,000 B. Bilal N$ 900,000 C. Chaplin N$ 720,000 5. According to the partnership agreement C. Chaplin is allowed a Salary of N$13,000,000 per annum. 6. The partnership agreement allowed each partner interest on their Capital account at 10% per annum You are required to prepare: a) Statement of Profit& Loss Account for the year ended 31 March 2017. (8 Marks) b) Profit& Loss Appropriation account for the year ended 31 March 2017. (5 Marks) Current Account of each partner (5 Marks) c) Statement of Financial position as at 31 March 2017. (7 Marks) [Total 25 Marks) 4