Simon, Wilson and Dillon are in partnership. The following trial balance has been prepared on 31 December 20X9:

Additional information
1. The inventory at 31 December 20X9 was valued at £31,000.
2. There is investment income accrued at 31 December 20X9 of £320.
3. The inventory of stationery at 31 December 20X9 was £170.
4. At the same date there were motor expenses accrued of £240 and rates paid in advance of £160.
5. The allowance for irrecoverable debts at 31 December 20X9 is to be adjusted to 2 per cent of trade receivables.
6. Mortgage interest accrued should be provided for at the end of the year.

7. Depreciation on vehicles, on a strict time basis, is 10 per cent per annum using the straight-line method.
8. The loose tools in inventory at 31 December 20X9 were valued at £960.
9. The following errors have been found:
a. unrecorded in the ledger is the sale of a delivery vehicle on credit on 1 November 20X9 for £1,900 – this vehicle cost £2,400 when it was purchased on 1 April 20X7;
b. irrecoverable debts for this year of £2,000 have not been written off;
c. bank charges of £130 have been omitted from the books.
Simon and Dillon are to be allocated salaries of £15,000 and £10,000 per annum, respectively.
All partners will be entitled to interest on capital of 10 per cent per annum. The remaining profit or loss is shared between Simon, Wilson and Dillon in the ratio of 2 : 2 : 1, respectively.

Required
Prepare in vertical form a statement of profit or loss and appropriation account for the year ended 31 December 20X9 and a statement of financial position at that date.

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Capital accounts - Simon - Wilson - Dillon Current accounts - Simon - Wilson - Dillon Freehold land and buildings Inventories Bank Delivery vehicles at cost Provision for depreciation on vehicles Goodwill at cost 8% mortgage on premises Salesmen's salaries Sales ledger control account Purchases ledger control account Unquoted investments Loose tools at valuation Sales revenue Investment income Returns Purchases Rates Motor expenses Allowance for irrecoverable debts Mortgage interest paid Printing and stationery Extension to premises Debit 3 1,800 65,000 34,900 10,100 30,000 11,000 19,480 28,000 6,720 1,200 400 64,000 12,100 2,800 1,600 1,100 5,000 295,200 Credit £ 35,000 25,000 10,000 5,600 4,800 18,000 40,000 25,000 130,000 800 600 400 295,200