Senathirajah and Purtill share profits in a proportion of 60:40. Senathirajah is entitled to a salary allowance of \($120\) 000 p.a., and Purtill is entitled to \($110000\) p.a. Capitals are fixed at Senathirajah \($166\) 500 and Purtill \($111000.\) Interest is to be calculated on partners’ capital, advances, and drawings in excess of salary at 7% p.a. The trial balance after the determination of profit for the 6‐month period is shown below.

Senathirajah had withdrawn \($27800\) cash on 1 March; Purtill’s cash drawings included \($55500\) on 1 March and \($27800\) on 1 June.
Required

(a) Prepare the Profit Distribution account for 6 months ended 30 June 2025.

(b) Prepare the Retained Earnings accounts for each partner at 30 June 2025.

(c) Prepare a balance sheet as at 30 June 2025.

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SENATHIRAJAH AND PURTILL Trial balance as at 30 June 2025 Debit Senathirajah, capital Purtill, capital Credit $166 500 111 000 Senathirajah, advance (balance at 1/1/2025) Senathirajah, retained earnings Purtill, retained earnings Senathirajah, salary Purtill, salary Cash at bank Accounts receivable Plant and equipment Accumulated depreciation equipment Inventory Accounts payable Profit or loss summary 55 500 $97 100 83 300 60 000 55 000 7 400 50 900 245 100 - plant and 110 500 74 000 42 600 186 700 $ 672 800 $ 672 800