The following were the balance of the partnership between Reynolds and Wynter as at December 31, 2015.

DR $ CR $

Capital on January 1, 2015

Reynolds 35,000

Wynter35,000

Current accounts on January 1, 2015

Reynolds 1,700

Wynter 400

Drawings during the year

Reynolds 8000

Wynter 6400

Land and building .........................................160 000

Equipment .......................................................15000

Cash and bank .................................................20000

Bank loan ..................................................................90,000

Electricity ..........................................................1400

Office salaries .................................................40000

Advertising ......................................................30000

Bad debts .............................................................700

Provision for bad debts ............................................. 700

Debtors ..............................................................6000

Creditors .................................................................... 9,500

Provision for depreciation: equipment ......................2,000

Stock on Dec. 31, 2015 ...................................30000

Gross profit for the year ............................................ 150,000

Additional information available includes:

i.The provision for bad debts is to be increased by $150

ii. The amount of advertising includes a payment of $220 for 2014

iii. There is an electricity bill of $150 due

iv. Equipment is to be depreciated at 10% on cost per annum

v. Interest on capital is allowed at 15% per annum

vi. Interest on drawings is 6 % per annum

vii. Profits and losses are to be shared in the ratio 4: 6 between Reynolds and Wynter

a.Draft the Profit and Loss and Appropriation Account for the year ended December 31.

b.Write up the current accounts of Reynolds and Wynter.