Question 1 Maxine and Paula are partners who share profits and losses in the ratio 3:1. Their trial balance as at 2018 December 31 was as follows: Sales Office salaries 295 500 25 000 Office expenses 12 630 Mortgage interest 8.000 Purchases 245 500 Stock at 2018 January 01 70 000 Bank 42 180 Creditors 22 350 Debtors 24 000 Fixtures 22 000 Provision for depreciation on fixtures 6 600 Building 100 000 Mortgage 10% 80 000 Capital - Maxine 60 000 - Paula 60 000 Current account - Maxine - Paula 7 500 3.500 Drawings - Maxine 8 500 -Paula 10 500 Motor vehicle 50 000 Commission received 20 500 587 130 587 130 Additional information: i. Stock at 2018 December 31 is $120 000. ii. Interest on capital is to be paid at 5%. Interest on drawings is to be charged at 5%. iv. Commission received is prepaid by $2 500. V. vi. Provide for depreciation of fixtures 10% using the reducing balance method and motor vehicle at 10% using the straight-line method. Paula is to be paid a salary of $10 000. ACCT1201 A. Prepare a partnership Income Statement and Appropriations Account for period ending 2018 December 31. B. Prepare the current account of each partner. (10 marks) (10 marks) (Total 20 marks)