Tom, Dick and Harry entered into a partnership on 1st January 2015 and agreed to contribute shs. 220,000, shs. 180,000 and shs 200,000 respectively as capital for the business. An investigation into their partnership deed revealed the following information:

Interest on capital is at 7.5% interest p.a. while interest on drawings is at 12% p.a.

Tom is a limited partner while the rest are general partners. The general partners shall take part in the management of the business.

Salary p.a. for those involved in the management of the business is fixed at 10% of the capital contributed into the business

The profits and losses to be shared proportionately.

During the year ended 31st December 2015, the partnership earned a net profit of shs.720, 000 while drawings were shs 60,000; and shs 75,000 for Dick and Harry respectively

Required:

Prepare the profit and loss appropriation accounts and the partners fluctuating capital accounts for the year ended 31st December 2015.