The following information relates to the first year operations of Cath and Dan partners.

Cath and Dan have been trading successfully in their first year and have recorded a Net Profit of $600,000, for the year ended 31st August 2021.Their Partnership Agreement specifies that each partner is to receive 10% interest on their initial capital investment of $500,000, and salary allowances of $150,000 and $100,000 respectively. The partners' salaries are to be treated as an allocation of profit.

Trial Balance - as at 31st August 2021 as follows

Trial Balance - as at 31st August 2021 as follows Accounts Dr $ Cr$ Asset 2100000 Liability 475000 Profit and Loss Account 600,000 Retained Earnings Account - Cath 28,000 Retained Earnings Account - Dan 60,000 Capital Account - Cath 500,000 Capital Account - Dan 500,000 Drawings - Cath 3,000 Drawings - Dan 4,000 Total 2135000 2135000 Required: a. Prepare the Profit and Loss Appropriation Statement for the year ended 31st Augest 2021. b. Balance Sheet as at 31st Auguest 2021