Preparing partners' accounts, including the calculation of interest on drawings Ryan. Sonya and Tara are in partnership. The partners made an agreement that profits and losses should be shared as follows:

• Interest should be charged on drawings at 12 percent per annum.

• Interest should be allowed on capitals at 8 percent per annum.

• Ryan should receive a salary of $33 000 per annum for managing the business. 

• Tara should receive a salary of $15 000 per annum for being responsible for promoting the business.

• Partners' drawings during the year ended 31 July 2014 were:

• Ryan: $24 000 on 30 November 2013 and $39 000 on 31 March 2014

• Sonya: $51 000 on 31 December 2013 and $36 000 on 31 May 2014

• Tara: $39 000 on 31 January 2014 and $39 000 on 30 June 2014.

• Remaining profits and losses should be shared equally.

The profit for the year ended 31 July 2014 was far lower than the partners had expected and amounted to $87 390.

Prepare:

a. The profit and loss appropriation account for the year ended 31 July 2014

b. The partners' capital accounts

c. The partners' drawings accounts

d. The partners' current accounts.

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Additional information: Fixed capitals Current account balances 1 August 2013 $ $ Ryan 660 000 5300 D Sonya 540 000 8 100 Or Tara 300 000 2 700 D