Genet and Vass are in partnership. The following balances were extracted from their books on 31 January 2013. Capital accounts 1 February 2012 $ Genet 60000 Vass 40000 Current accounts 1 February 2012 Genet 2400 Cr Vass 3600 Dr Drawings Genet 9000 Vass 10000 Inventory 1 February 2012 12400 Purchases 66200 Returns to suppliers 1230 Revenue 148200 Import duty 2846 Transport costs 4330 General expenses 16822 Wages 9600 Insurance premiums 10400 Marketing expenses 12200 Discounts received 2428 Trade receivables 8110 Trade payables 10180 Loan interest paid 1000 Storage expenses 9612 Provision for doubtful debts 600 Leasehold property (cost) 80000 8% Bank loan repayable 1 May 2018 15000 Storage equipment (cost) 26000 Motor vehicles (cost) 40000 Provisions for depreciation: Leasehold property 12000 Storage equipment 9360 Motor vehicles 19520 Bank 1202 Cr Additional information 1 Inventory was valued at $14230 on 31 January 2013. 2 Insurance premiums were paid up to 28 February 2013. 3 General expenses, $322, were owing at the year end. 4 A bad debt, $110, is to be written off. 5 The costs of bringing goods into the business amounts to 80% of the transport costs. 6 New storage equipment, $6000, was purchased during the year. This had been recorded in the storage expenses account in error. 7 The provision for doubtful debts is to be maintained at 5% of trade receivables. 8 A full year's depreciation charge is made on non-current assets in the year of purchase, but no charge is made in the year of sale. Depreciation is charged as follows: 1 Leasehold at $2000 per annum. 2 Storage equipment at 12% using the straight-line method of depreciation. 3 Motor vehicles at the rate of 20% per annum using the diminishing (reducing) balance method. 9 The partnership agreement states: Interest on capital is allowed at 4% per annum. Vass is to receive an annual salary of $5000. Profits and losses are to be shared in the ratio of their capital. REQUIRED

1. (a)Prepare the income statement and appropriation account for the year ended 31 January 2013.[24]
2. (b)Draw up the current accounts of the partners for the year ended 31 January 2013.[5]
3. (c)Prepare the balance sheet (statement of financial position) at 31 January 2013.[11]