QUESTION 1 The following list of balances at 30 June 2019 has been extracted from the books of Cannon and Ball, trading in partnership, sharing profits and losses in the proportions 3:2 respectively. sales Purchases Sales returns Purchases returns Carriage inwards Carriage outwards Receivables Payables Bank (Dr) Discounts allowed Discounts received Stationery Rent & rates Light and heating Salaries Telephone expenses Motor vehicle expenses Fixtures and fittings at cost Provision for depreciation of fixtures and fittings Motor vehicles at cost Provision for depreciation of motor vehicles Provision for doubtful debts Drawings: Cannon Ball Current account balances at 1 July 2018: Cannon Ball Capital account balances at 1 July 2018: Cannon Ball Inventory at 1 July 2018 Additional information: $ 644,200 416,400 4,200 12,200 10% 20% 3,400 4,800 18,000 16,800 16,000 1,900 740 7,000 20,600 17,400 72,200 5,800 11,240 52,000 22,400 92,000 50,000 600 48,000 22,000 7,200 Cr 4,800 Cr 66,000 34,000 46,000 (1) $20,000 is to be transferred from Cannon's capital account to a newly opened Cannon Loan account on 1 April 2019. Interest at 10% per annum on the loan is to be credited to Cannon. (2) Ball is to be credited with a salary at the rate of $24,000 per annum from 1 January 2019. (3) Inventory at 30 June 2019 has been valued at cost at $64,000. (4) Telephone expenses accrued, at 30 June 2019, amounted to $800. (5) Rent & rates of $1,200 were prepaid at 30 June 2019. (6) During the year ended 30 June 2019, Ball had taken goods costing $2,000 for his own use. Depreciation is provided at the following annual rate on the straight-line basis: Fixtures and fittings Motor vehicles (8) The Provision for Doubtful Debts is to be adjusted to 2% of receivables. REQUIRED (a) Prepare a Statement of Profit and Loss & an Appropriation account for the year ended 30 June 2019. (b) Prepare a Statement of Financial Position at 30 June 2019. (13 marks) (12 marks)