Math Problem Solver

| Particulars | Debit (Dr) "000" | Credit (Cr) "000" |

|----------------------------------|---------------------|----------------------|

| Sales | | 405,950 |

| Purchases | 226,040 | |

| Assets | | |

| Building (Net Book Value) | 220,000 | |

| Furniture and Fittings | 84,000 | |

| Accounts Receivable | 94,000 | |

| Bank Balance | 28,310 | |

| Inventory (1 Jan 2022) | 54,600 | |

| Expenses | | |

| Discounts Allowed | 2,100 | |

| Salaries and Wages | 84,000 | |

| Carriage Outward | 6,100 | |

| Bad Debts Written Off | 6,500 | |

| Interest on Loans | 4,500 | |

| Capital Account | | |

| Partner A Capital | | 90,000 |

| Partner B Capital | | 80,000 |

| Current Account | | |

| Partner A Current Account | | 28,000 |

| Partner B Current Account | | 18,000 |

| Drawings | | |

| Partner A Drawings | 24,800 | |

| Partner B Drawings | 17,000 | |

| Liabilities | | |

| Accounts Payable | | 63,000 |

| Loans | | 150,000 |

| Allowance for Doubtful Debts |- |- 4,600 |

|----------------------------------|---------------------|----------------------|

| Total | 851,950 | 851,950 |

Additional Information for the above trial balance

1.As of 31st December 2022, inventory was valued at 12,000,000.

2.Buildings: Depreciation is provided at 2.5% per annum using the reducing balance method.

3.Furniture and Fittings: Depreciation is provided at 10% per annum using the straight-line method.

4.Accrued Salaries: As at 31st December 2022, accrued salaries amounted to 400,000.

5.Interest on Drawings: The partnership agreement provides for interest on drawings at 5% per annum.

6.Interest on Capital: The partnership agreement provides for interest on capital at 10% per annum.

7.Annual Salary for Partner B: only Partner B is entitled to an annual salary of 12,000,000.

8.Allowance for Doubtful Debts: The allowance for doubtful debts is to be reduced by 1,200,000.

9.Interest on Loans: Interest on loans is charged at a rate of 5% per annum.

Required :

a) a statement of profit or loss and appropriation account for the year ended 31st December 2022