QUESTION 1 A Smith and B Jones are in partnership, trading as A Smith \& Co., retail drapers. The following trial balance is extracted from their books at 30 June 2017: They share profits and losses: A Smith two-thirds and B Jones one-third. Interest at 10% p.a. must be allowed on capital, but no interest is to be charged on drawings. A provision of 5% for doubtful debts must be created to cover doubtful debts. Furniture and fittings must be depreciated at the rate of 20% p.a. on cost. Stock on hand at 30 June 2017, is valued at R38 600 . You are required to: Prepare the income statement for the six months ended 30 June 2017