Question One Bo and Hope are partners in The Fancy Place . The firm has provided the following information as at December 31, 2020 DETAILS Dr Cr Motor Vehicle at cost 440,000 Prov for depreciation on motor vehicle 44,000 Utilities 35,000 Discounts 8,000 12,000 Commission received 120,000 Sales 485,000 Wages and Salaries 70,000 Carriage Outwards 3,500 Office expenses 25,600 Provision for bad debts 5,400 Building Repairs 40,000 Loan interest paid 42,000 Rent received 70,000 Carriage inwards 4,500 Purchases 391,000 Opening Stock 85,000 Bank 146,500 Creditors 55,200 Debtors 60,000 Fixtures at cost 350,000 Pro for depreciation on fixtures 70,000 Building at cost 900,000 10% Loan 600,000 Capital Bo 600,000 Hope 300,000 Current Account Bo 30,500 Hope 20,000 Drawings Bo 30,000 Hope 20,000 Return Outwards 7,000 2,535,100 2,535,100 End notes a. Closing Stock is valued at $130,000 b. Wages and salaries is prepaid by $20,000 c. Commission is prepaid by $30,000 d. The rent received is owing by $20,000 e. The provision of bad debts is to be adjusted to 10% of debtors f. Provide for depreciation as follows : Motor vehicle 5% on the Reducing Balance method; and Fixtures and Fittings 5% on the Straight Line method g. The partnership agreement allowed for the following i. Interest is to be charged on drawings at 5% p.a. ii. Interest is to be paid on capital at 5% p.a. iii. Bo is to be paid a salary of $67,000 p.a. iv. Profit or loss is to be shared in the same ratio as the capital Required : a. Prepare the following 1. The Statement of Profit and Loss and Appropriation Account ( 23 marks )