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 Capital - Jiao Capital - Minh 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 50,000 25,000 35,000 30,000 20,000 560,000 110,000 50,000 58,000 38,000 90,000 = In addition Tenshi made a short-term loan to the business of $30,000 on January 1 that year. Required: Using 'Taccount ledger format i. Prepare the Profit and Loss Summary Account ii. Prepare the Profit Distribution Account ii. Prepare the partners Retained Earnings Accounts QUESTION 3 Part A Profit and Loss Summary 30/6 30/6 Profit Distribution 30/6 30/6 30/6 30/6 Tenshi, Retained Earnings Balance 1/7 $35 000 = 30/6 30/6 Jiao, Retained Earnings 30/6 1/7 Balance $30 000 30/6 30/6 Minh, Retained Earnings 1/7 30/6 Balance $20 000 30/6 30/6 30/6 30/6