Samuel and Vinnie decided to form a partnership on 1 January 2017. They secured the services of a solicitor to draw up their partnership agreement as follows:
a. Samuel is to contribute the following:
• His vehicle valued at $72000
• Plant and equipment valued at $168000
• Accounts receivable totalling $28800.
b. Vinnie is to contribute the following:
• Cash totalling $48000
• A building valued at $336000
• A mortgage of $192000. This was secured over the building, and the partnership agreed to assume this liability.
It was also agreed that Samuel would act as manager with an annual salary of $120000, to be allocated at the end of each year. Profits or losses would be divided between Samuel and Vinnie in the proportion 3/5 and 2/5 respectively.
Gross profit for the year ended 31 December 2017 was $520000, with operating expenses of $240000. Samuel withdrew $24000 and Vinnie withdrew $32000 during the year.

Required
a. Prepare the balance sheet of the partnership on its formation (1 January 2017).
b. Calculate each partner’s share of profit for the year ended 31 December 2017.