The partnership has also been in a joint venture arrangement with Patel Juba. The partnership purchases vegetables from Kampala and they are sold in Juba by Patel. The venturers agreed to share profits in the ratio of 1:1. During the period under review the following transactions took place:

Transaction	Amount UGX 000
Purchases by the partnership	56,000
Commission paid by the partnership	2,000
Warehousing paid by Patel	1,000
Taxes paid by the partnership	6,000
Sales by Patel	120,000
Salaries and Wages paid by the partnership	30,000

Required

1. Write a memo to Mary and Peter the steps of preparing accounts from single entry.
2. Explain to the partnership the importance of having a full set of accounts.
3. Prepare a statement of Profit or Loss of the Partnership using data given above.
4. Explain the components of an accounting system.