Frame and French are in partnership sharing profits and losses in the ratio 3:2. The following is their trial balance as at 30 September 2016:

Required:
Prepare a statement of profit or loss and profit and loss appropriation account for the year ending 30 September 2016, and a statement of financial position as at that date.

(a) Inventory, 30 September 2016, £74,210.

(b) Expenses to be accrued: Office Expenses £215; Wages £720.

(c) Depreciate fixtures 15 per cent on reducing balance basis, buildings £5,000.

(d) Reduce provision for doubtful debts to £1,250.

(e) Partnership salary: £30,000 to Frame. Not yet entered.

(f) Interest on drawings: Frame £900; French £600.
(g) Interest on capital account balances at 5 per cent.

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Dr m Buildings (cost 210,000) 160,000 Fixtures at cost 8,200 Provision for depreciation: Fixtures 4,200 Accounts receivable 61,400 Accounts payable 26,590 Cash at bank 6,130 Inventory at 30 September 2015 62,740 Sales 363,111 Purchases 210,000 Carriage outwards 3,410 Discounts allowed 620 Loan interest: P. Prince 3,900 Office expenses 4,760 Salaries and wages 57,809 Bad debts 1,632 Allowance for doubtful debts 1,400 Loan from P. Prince 65,000 Capitals: Frame 100,000 French Current accounts: Frame French Drawings: Frame French 75,000 4,100 1,200 31,800 28,200 640,601 640,601