1. Sara, Fatima and Elnaz operate a business organized as a partnership to which each has contributed $ 800,000 in capital. During their accounting years they made a profit of $600,000. Drawings amounted to $60,000 for Sara, $40,000 for Fatima and $50,000 for Elnaz.

Their partnership agreement stipulates the following:

• A profit-sharing ratio of 1:2:3
• Eight percent interest on capital
• Fifteen percent interest charged on drawings
• Sara and Fatima receives a salary of $15,000 per annum

Required: Prepare an appropriation statement for the partnership. (10 Marks