Aung and Khin are in partnership. The partnership agreement states that they share profits and losses in the ratio 3:2 respectively. Interest is charged on drawings (excluding partnership salary) at the rate of 5%. A salary of $9000 per annum is paid to Khin. The following balances were extracted from the books on 30 September 2018. Capital accounts Aung $50000 Khin $50000 Current accounts at 1 October 2017 Aung $3000 Debit Khin $6000 Credit Drawings Aung $9000 Khin $14000 Land and buildings (at cost) $140000 Motor vehicles (at cost) $42000 Office equipment (at cost) $64000 Provisions for depreciation at 1 October 2017 Land and buildings $29600 Motor vehicles $10000 Office equipment $46000 Provision for doubtful debts $500 8% Bank loan (repayable 31 March 2020) $60000 Bank interest paid $3600 Bank $5200 Debit Revenue $309000 Purchases $174000 Returns inwards $9100 Trade payables $45200 Trade receivables $31000 Inventory at 1 October 2017 $19700 Marketing expenses $25000 Other operating expenses $17250 Wages and salaries $40500 Motor vehicle expenses $9200 Commission receivable $12250 Rent paid $12000 Additional information at 30 September 2018 1 Inventory was valued at $36000. 2 Marketing expenses prepaid were $4000. 3 Commission receivable of $1750 was due. 4 Depreciation is to be charged on all non-current assets as follows: (i) Buildings at the rate of 4% per annum on cost. The land cost $80000 and is not depreciated. (ii) Motor vehicles at the rate of 25% per annum using the diminishing (reducing) balance method (iii) Office equipment at the rate of 10% per annum on cost. 5 The salary of Khin was paid and recorded in the wages and salaries account. 6 A payment of $6800 made by cheque to a trade supplier, had not been recorded in the books. 7 Trade receivables of $5000 were irrecoverable. The provision for doubtful debts is to be maintained at 5%.