Terry and Craig share profits in the proportion of one-third and two-thirds respectively. On 1 July 2015, the equity accounts stood as follows:

	Terry				Craig
Capital Retained earnings	$	80 000 25 000			$	120 000 32 000

Partners were entitled to 8% interest on capital, and Terry, as manager, was entitled to a salary of $30 000 p.a. During the year, Terry withdrew $12 000 in cash and Craig withdrew $17 000. The profits for the year ended 30 June 2016 were $68 000 before providing for interest on capital bal­ances and for Terry’s salary.

Required

Prepare the Profit Distribution accounts and partners’ Retained Earnings accounts for the year ended 30 June 2016.