R and G were in partnership sharing profits equally.

The following Trial Balance was extracted from their books as at $31\mathrm{.}12\mathrm{.}2020,$

after various adjustments such as depreciation had been made:

Trial Balance as at $31$ December $2020$

Dr Cr

$ $

Capital Account $(1$ Jan $2020)$

R $-------------------------------24,000$

G $-------------------------------22,500$

Drawings during the year:

R $-------------------------------6,580$

G $-------------------------------6,025$

Current Account:

R $-------------------------------1,323$

G $-------------------------------125$

Motor Vans $-----------------------------------6,900$

Inventory $(1$ Jan $2020)---------5,875$

Accounts Receivables $8,320$

Accounts Payables $5,840$

Purchases $-------------------------------37,850$

Sales $-------------------------------96,503$

Sales Return $251$

Rates and insurances $-------------------1,785$

Discount Received $2,000$

Salaries $-------------------------------12,057$

Bad Debts $-------------------------------184$

Allowance or Provision for bad Debts $--260$

Land $--------------------------------50,000$

Plant and Machinery $-------------------18,000$

bank balance $------------------------------12,475$

Bank Loan $----------------------------10,000$

Interest on Loan $--------------------------800$

General Expenses $------------------------2,014$

Van Running expenses $-------------------3,185$

Loan from R $------------------------------10,000$

$172,426172,426$

Inventory on $31$ December $2020$ amounted to $ $11,765.$

The allowance for Bad Debts is to be increased to $ $432.$

Partners are allowed $10\%$ Interest on capital.

Partners are charged $6\%$ Interest on Drawings.

Interest on capital is agreed to be provided at $10\%$

Salary to R is $ $5,000.$

Interest on loan from R is to be provided @ $10\%.$

Depreciation is to be provided for Plant and machinery at $20\%$ and for Motor Van at $25\%$

Staff salary for December $2020$ amounted to $ $750$ has not been paid by the end of $31/12/2020.$ Insurance includes $ $35$ in respect of $2021.$

You are required to prepare:

Income Statement,

Profit and Loss Appropriation Account $($Statement of division of Income$)$

Partners' Capital Account

Partners$$ Current Accounts, and

a Statement of Financial Position $($Balance Sheet$)$ as at $31/12/2020.$