Miller, Morris and Mason are partners in the consulting firm of MMM Partners. The balance sheet of the partnership as at 30 June 2015 is set out below.

It was agreed that all profits should be divided equally between the partners. 

 Business transactions for the year ending 30 June 2016 were as follows (ignore GST):

Sales	$	472 600
Cash receipts: Sales collected	$	474 800
Cash payments: Purchases Salaries Office expenses Operating expenses Drawings: Miller                  Morris                  Mason		283 200 62 900 24 500 43 300 12 000 12 500   11 800
	$	450 200

Inventory at 30 June 2016 was $45 000. Non-current assets are depreciated at 10% p.a.

Required

A. Prepare the income statement for the year ended 30 June 2016.

B. Prepare a statement of changes in partners’ equity for the year ended 30 June 2016.

C. Prepare the balance sheet as at 30 June 2016.

Transcribed Image Text:

MMM PARTNERS Balance Sheet as at 30 June 2015 CURRENT ASSETS $30 200 Cash at bank Accounts receivable 32 600 Inventory $109 500 46 700 NON-CURRENT ASSETS Plant and Equipment Office furniture 88 400 34 300 122 700 $232 200 CURRENT LIABILITIES $ 22 600 Accounts Payable EQUITY Partner's capital accounts: Miller Morris $62 000 62 000 Mason 42 000 166 000 Partner's retained earnings: Miller Morris 16 200 12 800 Mason 14 600 43 600 $232 200