Question $3(25$ marks$)$

Read the following information and answer questions that follow.

Jabo and Jilly are in partnership, sharing profits and losses equally. The following is their

trial balance as at $30$ June $2019.$

Dr Cr

P P

Building at cost $25,000\mathrm{.}00$

Fixtures at cost $5,500\mathrm{.}00$

Provision for depreciation: Fixtures $1,650\mathrm{.}00$

Debtors $8,121\mathrm{.}50$

Creditors $5,575\mathrm{.}00$

Cash at Bank $338\mathrm{.}50$

Stock at $30$ June $201920,989\mathrm{.}50$

Sales $61,825\mathrm{.}00$

Purchases $42,708\mathrm{.}00$

Carriage outwards $644\mathrm{.}00$

Discount allowed $57\mathrm{.}50$

Loan: Interest $2,000\mathrm{.}00$

Office expenses $1,208\mathrm{.}00$

Wages $9,458\mathrm{.}50$

Bad debts $251\mathrm{.}50$

Provision for bad debts $200\mathrm{.}00$

Loan from J$.$ Williams $20,000\mathrm{.}00$

Capital:

Jabo $17,500\mathrm{.}00$

Jilly $14,750\mathrm{.}00$

Current Accounts:

Jabo $653\mathrm{.}00$

Jilly $149\mathrm{.}00$

Drawings:

Jabo $3,200\mathrm{.}00$

Jilly $2,825\mathrm{.}00$

$122,302\mathrm{.}00122,302\mathrm{.}00$

Additional information:

a$.$ Stock $30$ June $2019$ was P$28,170\mathrm{.}00.$

b$.$ Expenses to be accrued: Office expenses P$48\mathrm{.}00$ and wages P$100\mathrm{.}00.$

c$.$ Depreciate fixtures $10\%$ on reducing balance basis. Depreciate buildings P$500\mathrm{.}00.$

d$.$ Reduce provision for bad debts to P$160\mathrm{.}00.$

e$.$ Partnership salary: Jabo P$400\mathrm{.}00.$

f$.$ Interest on drawings, Jabo P$90\mathrm{.}00$ and Jilly P$60\mathrm{.}00.$

g$.$ Interest on capital account balances at $10\%.$

Required:

Prepare Jabo and Jilly$$s Trading, Profit and Loss and an appropriation account