Taylor, Thomas and Trevor are partners in the consulting firm of Taylor and Associates. The bal­ance sheet of the partnership as at 31 March 2025 is shown below.

It was agreed that all profits would be divided equally between the partners. Business transactions for the year ending 31 March 2026 were as follows (ignore GST).

Required

(a) Prepare the income statement for the year ended 31 March 2026.

(b) Prepare a statement of changes in partners’ equity for the year ended 31 March 2026.

(c) Prepare the balance sheet as at 31 March 2026.

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CURRENT ASSETS TAYLOR AND ASSOCIATES Balance Sheet as at 31 March 2025 Cash at bank Accounts receivable Advances receivables from clients NON-CURRENT ASSETS Professional library Office furniture CURRENT LIABILITIES Accrued expenses (office) $ 61 980 59 500 6 880 $ 128 360 45 000 66 500 111 500 $ 239 860 15 200 EQUITY Partner's capital accounts: Taylor 51 450 Thomas 51 450 Trevor 44 100 147 000 Partner's retained earnings: Taylor 29 500 Thomas 25 500 Trevor 22 660 77 660