Gray, Wilkes and Booth are partners. They share profits and losses in the ratios of ³/8, ³/8 and ¹/4 respectively.

For the year ended 31 December 20X3 their capital accounts remained fixed at the following amounts:

They have agreed to give each other 5 per cent interest per annum on their capital accounts.

In addition to the above, partnership salaries of £32,000 for Wilkes and £14,000 for Booth are to be charged.

The net profit of the partnership before taking any of the above into account was £84,800.

Required:

Draw up the appropriation account of the partnership for the year ended 31 December 20X3.

Transcribed Image Text:

Gray Wilkes Booth £ 50,000 40,000 30,000