Tom and Faith are in a partnership sharing profits and losses in the ratio of ^3/5 for Tom and ^2/5 for Faith. The partnership deed provides for interest on capital at the rate of 5% and interest on drawings at 10% per annum. The partners are entitled to annual salaries of $ 2,000 and $1,000 for Tom and Faith respectively.

 The following balances were extracted from the books of the partnership as at 30th, September 2020:

	$
Capital accounts:
Tom	14,000
Faith	10,000
Current accounts:
Tom	4,000
Faith	2,500
Drawings:
Tom	3,800
Faith	2,200

During the year the partners had made a net profit of $15,000 for the business.
Required:

Prepare the partners’ current accounts as at 30th September 2020.

Answer rating: 100% (QA)

Toms Current Ac Particulars Amount Particulars Amount To interest on Drawings 380010 380 By b... View the full answer