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. (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 10% Motor vehicles 20% (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. (13 marks) (b) Prepare a Statement of Financial Position at 30 June 2019. (12 marks) (Total 25 marks)