Shikongo and Chidende are in partnership. Interest is allowed on capital and on the opening current account balances at 5% pa. Shikongo is to be credited with a salary of N$25 000 in recognition of extra duties. Interest is charged on drawings (see note). Shikongo and Chidende agree to share profits equally.

The following trial balance was drawn up on 28 February 2022: $

N$ Capital accounts Shikongo 100 000

Chidende 100 000

Current accounts

Shikongo 13 000

Chidende 7 000

Drawings Shikongo 42 000

Chidende 44 000

Purchases 312 000

Sales 650 000

Postage and stationery 16 000

Staff wages 124 000

Rent and insurance 29 000

General expenses 16 000

Credit losses to be written off 8 000

Inventory 01 March 2021 43 000

Equipment at cost 200 000

Accounts receivable 74 000

Accounts payable 41 000

Cash and bank 7 000

Allowance for credit losses 4 000

915 000 915 000

Additional information at 28 February 2022:

Inventory was valued at N$37 000.

Staff wages owing amounted to N$7 000.

Insurance prepaid amounted to N$4 000.

Equipment is to be depreciated at 20% on cost.

Allowance for credit losses is to be increased to N$7 000.

Both partners are to be charged N$1 500 each, interest on drawings.

Required

a) Prepare the firms statement of profit or loss appropriation for the year ended 28 February 2022. [25 marks]

b) Prepare the partners current accounts for the year ended 28 February 2022. [15 marks]