White, Green and Willis are partners. They share profits and losses in the ratios of 1/4, 1/4 and 1/2 respectively.

For the year ending 31 December 2016 their capital accounts remained fixed at the following amounts:

They have agreed to give each other 6 per cent interest per annum on their capital accounts. In addition to the above, partnership salaries of £60,000 for Green and £10,000 for Willis are to be charged.
The net profit of the partnership before taking any of the above into account was £180,000.

Required:
Draw up the appropriation account of the partnership for the year ending 31 December 2016.

Transcribed Image Text:

White Green Willis f 70,000 90,000 100,000