Winter and Edith are in partnership sharing profits and loses in the ratio 2:1 The following balances were extracted from the business on 31 December 2016

Provision for depreciation of motor vehicles 3,000.00

Provision for depreciation of fittings 2,000.00

Bank 950.00

Drawings : winter 2000.00

Edith 600.00

Motor Vehicles at cost 35,000.00

Fittings at cost 12,000.00

Premises 20,000.00

Rent Received 500.00

Debtors 25,700.00

Creditors 15,600.00

Current account, Winter 600 and Edith 0

Provision for doubtful debts 950

Gross Profit 32,000

Heating and lighting 1,400.00

Wages and salaries 4,100.00

Cash 600.00

Capital account : Winter 35,000.00

Edith 12,000.00

At 31 December 2016, the following information needs to be taken into consideration

1. The provision for dutiful debts is to be maintained at 3% of the debtors
2. Rent received of K100.00 has been paid in advance
3. A heating invoice of K100.00 has not yet been paid
4. K200 wages have been paid
5. Depreciation needs to be provided on the following basis, motor vehicles at 10% using straight line method, and fittings at 15% using reducing balance method
6. The partnerships agreement provides for the following:

-Interest on drawings is charged at the rate of 6% per annum

-interest on capital is allowed at the rate of 8% per annum

-Edith is to receive a salary of K3,263 per annum

You are required to prepare

1. Partnership profit and loss account for the year ended 31 December 2016
2. Partnership, appropriation account for the year ended 31 December 2016
3. Partnership current accounts for the year ended 31 December 2016
4. Balance sheet as at 31 December 2016