Beauty and Ugly are partners in a grocery store. The following information relates to the financial year ending on 28th February 2007:

Capital: Beauty ........................................N$100,000

Capital: Ugly ...........................................N$150,000

Salaries from partnership: Beauty..............N$30,000

Ugly ...........................................................N$35,000

Drawings: Beauty ......................................N$15,900

Drawings; Ugly .........................................N$20,000

The net profit for the year was N$123,000.

Profits to be shared in the same ratio as the capital contribution. There were no movements in the capital accounts from the date of starting the partnership.

Interest on capital must be calculated at 8% on capital account’s balance Interest on drawings must be calculated at 10% on the last balance.

You are required to draw up the appropriation statement and the current accounts for the partners.