Question 4 (21 Marks: 38 minutes) The following information relates to the partnership Ferrari & Porsche: Capital account 31/3/2023 Ferrari Porsche Drawings for the year ended 31/3/2023 Ferrari Porsche Profit for the year ended 31/3/2023 Additional information: N$ REQUIRED: 175 000 140 000 87 500 96 250 157 500 The partnership agreement provides for: 5 1. Partners Ferrari & Porsche share profits and losses in the ratio 3:5. 2. Interest at 15% per annuum on the closing balances of the capital accounts. 3. Interest on drawings should be provided for at 5% per annum. 4. A managerial salary of N$7 000 per month to Ferrari, payable during the year. This amount was treated as an expense in determining the profit for the year. 5. Porsche is entitled to a bonus of 10% of the annual net profit after any distribution to partners are taken int account. 6. On 1 April 2022, Ferrari made an additional capital investment of N$60 000. 7. An amount of N$ 50 000 should be distributed to the general reserve. drawing 1. Prepare the appropriation account of the partnership as at 31 March 2023. (11 marks) 2. Show the owner's equity section of the statement of financial position of the partnership on 31 March 20.3. The calculation of the new balances should be clearly shown. (10 marks)

The following information relates to the partnership Ferrari \& Porsche: Additional information: The partnership agreement provides for: 1. Partners Ferrari \& Porsche share profits and losses in the ratio 3:5. 2. Interest at 15% per annuum on the closing balances of the capital accounts. 3. Interest on drawings should be provided for at 5% per annum. 4. A managerial salary of N$7000 per month to Ferrari, payable during the year. This amount was treated as an expense in determining the profit for the year. f P 5. Porsche is entitled to a bonus of 10% of the annual net profit after any distribution to partners are taken int account. 6. On 1 April 2022, Ferrari made an additional capital investment of N$60000. 7. An amount of N$50000 should be distributed to the general reserve. REQUIRED: 1. Prepare the appropriation account of the partnership as at 31 March 2023. (11 marks) 2. Show the owner's equity section of the statement of financial position of the partnership on 31 March 20.3. The calculation of the new balances should be clearly shown. (10 marks)