Question 2 Felicia, Jackson and Elizabeth are in Partnership Sharing Profits and Losses in the ratio of 5:3:2 respectively. According to the Partnership Agreement, Partners Capital Accounts attract an interest of 20% per annum. While any Drawings by a Partner also attract 10% interest per annum. The following understated Trial Balance has been extracted after the preparation of the Profit and Loss Account for the period ending 31st December, 2014. Building Furniture and fittings Motor Vehicles Payables Receivables Cash at bank Inventory (31/12/14) Capital Accounts: Felicia Jackson Elizabeth Current Accounts: Felicia Jackson Elizabeth Loan - Elizabeth Profit and Loss Account Debit Credit (GHC) (GHC) 55.000 20,000 45,000 25,000 20,000 35,000 20,000 50,000 30,000 20,000 2,000 5,000 10,000 20,000 63,000 210,000 210.000 The following entries have not been recorded in the books. Salary of GH500 per month was paid to Elizabeth during the period. ii. Felicia personally paid General Expenses of GH2,500 on behalf of the Partnership iii. Cash Drawings made by partners: Felicia GH2,000, Jackson GH1,500 and Elizabeth GH 1.200 Interest on loan - Elizabeth is charged at 10% per annum. Jackson took goods worth of GH2,000 for personal use. Interest on Capital Account. All Capital Accounts were to remain fixed. You are required to prepare: a. Profit or Loss and Appropriation Account b. Partners' Capital Account c. Statement of Financial Position as at 31 December, 2014 iv. v. vi