You are the accountant of BB Partnership. An extract of the trial balance is provided below as at 30 September 20.1.

Details	Debit	Credit
Sales		$3,755,200
Purchases	$3,120,000
Inventory (1 October 20.0)	$200,000
Creditors		$195,000
Buildings	$900,000
Machinery	$120,000
Long term loan		$400,000
Rent expense	$20,000
Rental income		$40,000
Bank	$32,200
Bad debts	$3,600
Salaries	$181,000
Petty cash	$4,400
Discount allowed	$12,000
Capital:
E Bridge		$400,000
S Benade		$600,000
Debtors	$168,000
Term deposit	$50,000
Drawings:
E Bridge	$108,000
S Benade	$111,000
Discount received		$10,800
Investment	$370,800
	$5,401,000	$5,401,000

Additional information:

1. The value of inventories on 30 September 20.1 was $ 170 000. Net realisable value was $150 000.
2. Depreciation must still be provided for. Machinery were bought on 1 January 20.1 and are depreciated on the units of production method. The total estimated machine hours are 350 000 hours and during the year 72 916.6667 hours were used. Buildings must be depreciated for the first time at 10% on cost and was purchased on 1 October 20.0.
3. A further $ 2 200 must be written off as irrecoverable and a provision for bad debts must be created at 5% of outstanding debtors.
4. The accountant of BB Partnership did not post a purchase returns for goods bought on credit. An amount of $ 5 000 must be accounted for.
5. Included in sales is an amount of $ 10 000 for which BB Partnership have not yet performed the necessary work.
6. The partnership agreement stipulates the following:
   • Both partners are allowed a salary of $ 6 500 per month
   • Interest of 4% is allowed on the capital accounts of each partner
   • Interest of 8% is charged on drawings outstanding irrespective of when they were made
   • The partners share profits and losses based on their capital account balances

REQUIRED:

1. Prepare the Statement of profit and loss and appropriation for the year ending 30 September 20.1.
2. Prepare the Statement of Financial Position as at 30 September 20.1.