The junior accountant of the firm has prepared the following trial balance as on 31^st December 2019

after incorporating gross profit and balance sheet as on 31^st December 2019. He has missed a few ledger

account balances in preparing the trial balance but included those accounts in the balance

sheet.

Trial Balance for the year ended 31^st December 2019.

Particulars	Debit (OMR)	Credit (OMR)
Provision for depreciation Building		5000
Cash	7000
Drawings Ajims	2000
Arif	1000
Building	20,000
Tools	8,000
Bank Loan		6000
Interest received		3000
Debtors and Creditors	8000	4000
Current account - Ajims		2000
Arif		3000
Gross profit		5000
Commission paid	6000
Capital - Ajims		15,000
Arif		9,000
Total	52,000	52,000

Balance Sheet As on December 31st 2019.
Liabilities	Amount	Assets	Amount
Creditors Bank loan Capital Ajims 15,000 Arif 9000 Current Account Ajims Arif Salary Outstanding	5000 4000 24,000 567 2433 1000 37000	Tools Debtors Building Cash	7,000 10,000 13 000 7,000 37000

The partnership agreement provides for the following information;

a) Interest on drawings is charged at 6% per annum.

b) Interest on capital is allowed at 10% per annum.

You are required to:

1. prepare the partnership profit and loss account for the year ended 31^st December 2019

(4 marks)

2. prepare the partnership appropriation account for the year ended 31^st December 2019

(2 marks)

3. prepare each partner current account at 31^st December 2019

(2 marks)

4. State whether the claim is valid if the partnership agreement is silent in the following matters. (2 marks)

1. Ajims is an active partner so he wants OMR 10,000 per annum
2. If Arif advanced a loan to the firm, can he claim interest at 10% per annum?