River, Stream and Pool are in partnership with an agreement to share profits in the ratio 3:2:1 respectively. They also agree that:

all three should receive interest at 12% on capital

pool should receive a salary of Shs.6 million per annum

interest will be charged on withdrawals at the rate of 5% (charged on the end of the year withdrawals balances)

The interest rate on the loan by River is 5%

The statement of financial position as at 31 December 2016 revealed the following.

Sh. 000 Sh. 000

Capital accounts: River 20,000

Stream 8,000

Pool 6,000

34, 000

Current accounts: River 3,500

Stream (700)

Pool 1,800

4,600

Loan account (River) 6,000

Capital employed to finance net long term assets and working capital 44, 600

Withdrawals on account made during the year to 31 December 2016 were as follows:

Sh 000

River 6,000

Stream 4,000

Pool 7,000

The net profit for the year to 31 December 2016 was Shs. 24.53 million before deducting loan interest.

Required :

a) Partners appropriation account ( 5 marks)

b)Partners Capital accounts (5 marks)

c)Partners Current accounts, for the year ended 31^st December 2016. ( 10 marks)