QUESTION 3 Part A Tenshi Jiao and Minh are in partnership with profits shared in the ratio of their original capital investments. The partnership agreement provides the following: Interest on capital to be credited at 10% p.a. Interest on drawings to be charged at 15% p.a. Minh is to receive a salary in addition to any profit share Loans by partners to the business are at an interest rate of 6% p.a. The following information relates to the 30 June EOFY account balances before applying any interest payments and before the profit distribution. Capital - Tenshi 4 50,000 4 Capital - Jiao Capital - Minhe Retained earnings - Tenshi Retained earnings - Jiao Retained earnings - Minh Gross profit Operating expenses Salary due to Minh Drawings - Tenshi Drawings - Jiao- | Drawings Minh 50,000 25,000 35,000 e 30,00042 20,000 560,0004 110,000 50,000 58,000 38,000 90,000 i. ii. In addition Tenshi made a short-term loan to the business of $30,000 on January 1 that year. Required: Using 'T' account ledger formate Prepare the Profit and Loss Summary Account Prepare the Profit Distribution Account Prepare the partners Retained Earnings Accounts QUESTION 3 Part A Profit and Loss Summary 30/62 30/60 iii. le d e se Ha de de Profit Distribution 30/6 30/6 tttt 30/6 He 30/60 de titlt titt Tenshi, Retained Earnings 1/7 Balancee e $35 000 e tit e t 30/ 6e 30/6 e e tittit 3 Jiao, Retained Earnings 1/72 e $30 000 30/60 30/6 30/60 Balance e 3 e Minh, Retained Earnings 41/7 30/60 Balance $20 000 e 30/6 30/60 30/6 30/62 e e