Jian and Shen are in partnership sharing profits and losses in the ratio 3:1. Interest is allowed on capital at the rate of 5% per annum and is charged on drawings (excluding salaries) at the rate of 10%. A salary is paid to Shen of $5000 per annum. The following balances were extracted from the books on 30 June 2017: $ Leashold buildings (cost) 120000 Motor vehicles (cost) 40000 Office fixtures (cost) 18000 Provisions for depreciation Leasehold buildings 30000 Motor vehicles 10000 Office fixtures 4000 Capital accounts Jian 70000 Shen 50000 Current accounts Jian 500 Debit Shen 900 Debit Drawings Jian 8000 Shen 6000 8% Bank loan (repayable 2025) 50000 Bank loan interest paid 2500 Trade receivables 63500 Trade payables 23150 Bank overdraft 10600 Provision for doubtful debts 2000 Revenue 520000 Inventory at 1 July 2016 37800 Purchases 314000 Returns from customers 10300 Returns to suppliers 8200 Carriage 12550 Wages and salaries 87500 Electricity and water 8450 General expenses 28850 Motor vehicle expenses 19100 Additional information 1 Inventory at 30 June 2017 was valued at $42900. 2 At 30 June 2017: Electricity and water, $1150, were accrued Motor vehicle expenses, $200, were prepaid 3 The partner's salary had been paid to Shen. This had been posted to the wages and salaries account. 4 The carriage included $3000 for the collection of purchases. The remainder was for delivery to customers. 5 Office fixtures costing $2000 and with an accumulated depreciation of $1500 had been sold for $500. A cheque was received on 20 June 2017. No entries had been recorded in the books. 6 Depreciation is to be charged on all non-current assets owned at the end of each year. (i) Leasehold buildings are held on a 20-year lease. An appropriate amount is to be written off the lease. (ii) Motor vehicles are depreciated at the rate of 25% per annum using the diminishing (reducing) balance method. (iii) Office fixtures are depreciated at the rate of 10% per annum using the straight-line method. 7 Trade receivables include a debt of $3500 which is considered irrecoverable. The provision for doubtful debts is to be increased to $5000. REQUIRED