Ralph and Doren are $$partners $$ in $$The Mariposa. The $$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 received $8,000$

Commission received $120,000$

discount allowed $12000$

Sales $785,000$

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

Ralph $400,000$

Doren $200,000$

Current Account

Ralph $30,500$

Doren $20,000$

Drawings

Ralph $30,000$

Doren $20,000$

Return Outwards $7,000$

$2,535,1002,535,100$

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End $$notes

a$.$ Closing $$ Stock is $$valued $$at $$$$130,000$

$$

b$.$ Wages and salaries $$is $$prepaid $$by $$20,000$

$$

c$.$ Commission is owing $$by $$30,000$

$$

d$.$ The $$rent received is prepaid by $$20,000$

$$

e$.$ The $$provision of bad debts is to be adjusted $$to $5\%$ of debtors

$$

f$.$ Provide for depreciation as $$follows : Motor $$vehicle $5\%$on the $$Straight Line; $$and $$Fixtures and $$Fittings $5\%$on the $$Reducing Balance 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. Doren $$is $$to be paid a salary of $$40,300$ p$.$a$.$

iv$.$ Profit or loss is to be shared in the same $$ratio as $$ the $$capital

$$

$$

Required : Prepare $$ the $$following $$

a$.$ The $$Statement of $$Profit and Loss $$and $$ Appropriation $$Account $(30$ marks$)$

b$.$ The $$Current Account $(11$ marks$)$