Peter and Paul, whose year end is 30 June, are in business as food wholesalers. Their partnership deed states that:

a. profits and losses are to be shared equally;

b. salaries are: Peter £20,000 per annum; Paul £18,000 per annum;

c. interest on capital of 10 per cent is allowed;

d. interest on drawings of 5 per cent is charged;

e. interest on loans from partners is given at the rate shown in the Partnership Act 1890.

The trial balance as at 30 June 20X3 is as follows:

You also ascertain the following:
1. Inventory at 30 June 20X3 is £8,264.
2. Depreciation by the straight line method is 10 per cent per annum on plant and machinery and 20 per cent per annum on motor vehicles. The latter are used by the administrative staff. The revaluation method of depreciation is used for loose tools. These have a value at 30 June 20X3 of £927.
3. Included in wages are drawings of £6,000 by Peter on 1 March 20X3 and £8,000 by Paul on 1 October 20X2.
4. The provision for bad debts at 30 June 20X3 is to be £180.
5. Trade receivables include bad debts of £240.
6. Sales revenue includes goods that are on sale or return at a price of £200. The cost price of these is £160.
7. Electricity accrued at 30 June 20X3 amounts to £82.
8. Rates prepaid at 30 June 20X3 are £34.
Prepare a statement of profit and loss and appropriation account for the year ended 30 June 20X3 and a statement of financial position at that date. Present your answer in vertical form.

Debit Credit Copital- Peter 100,000 80,000 Paul Current accounts Peter 804 21,080 12,000 -Paul Loan ot 1 July 20X2 Peter Freehold premises at cost Plant and mochinery at cost Provision for depreciation on plarnt Motor vehicles at cost Provision for depreciation on vehicles Loose tools ot 1 July 20X2 Inveniories Trade receivables Trade payables Bank Electricity accrued at 1 July 20X2 Paid for electricity Purchases Soles revenue Warehouse wages Rates Postage and telephone Printing and stationery Provision for bad debts Selling expenses 115,000 77,000 22,800 36,500 12,480 1,253 6,734 4,478 3,954 7,697 58 3,428 19,868 56,332 23,500 5,169 4,257 2,134 216 1,098 308,920 308,920