Wendy and Charles are in partnership operating a restaurant. They share profits and losses in the ratio $70$:$30.$ The following is the partners$$ income statement for $2020.$

Wendy and Charles

Income statement for the Year Ending $31$ December $2020$

$

Operating sales Revenue....................................................................................... $13,500,000$

Less Cost of Sales:

Beginning Inventory... $1,400,000$

Purchases of Inventory... $3,600,000$

Cost of Inventory Available for Sale $5,000,000$

Less Ending Inventory... $2,000,000$

Cost of Sales.......................................................................................................... $(3,000,000)$

Gross Income........................................................................................................ $10,500,000$

Less Operating Expenses

Electricity........................................................................... $240,000$

Rates................................................................................... $160,000$

Delivery Expense............................................................... $300,000$

Wages and Salaries... $1,500,000$

Depreciation of Building and Kitchen Equipment $500,000$ Penalty on GCT for not paying over Tax on time $70,000$

Total Operating Expenses.................................................................................. $2,770,000$ Net Operating Income........................................................................................ $8,730,000$

Additional Information

$1.$ $$50,000$ of the delivery expenses were for Wendy$$s private use.

$2.$ Capital allowances have been computed at $$580,000.$

$3.$ Charles is $70$ years and received pension income of $$25,000$ per month.

$4.$ Wendy received professional fees for consultancy work done gross of $$250,000.$

$5.$ During $2020,$ Wendy and Charles paid estimated tax of $$250,000$ and $$100,000,$ respectively.

$6.$ $$800,000$ of the $$1,500,000$ salary was paid to Charles.

You are required to:

$($a$)$ Show the partnership adjusted profit statement and the partner$$s annual returns