Marcel and Naomi are in partnership. The partnership agreement states that the profits and losses are shared, Marcel three-fifths, Naomi two-fifths. Interest on capital is allowed at the rate of 4% per annum. Interest is charged on drawings (excluding salaries) made during the year at the rate of 5%. Marcel receives a salary of $8000. The following balances were extracted from the books on 30 April 2019. Purchases $ 184000 Revenue 328 000 Purchases returns 17500 Inventory at 1 May 2018 31 300 Non-current assets (at cost) Premises 90 000 Motor vehicles 80000 Fixtures and fittings 52000 Wages and salaries 46000 Motor vehicle expenses 17450 Provisions for depreciation Premises 38000 Motor vehicles 8000 Fixtures and fittings 23000 Provision for doubtful debts 600 General expenses 18600 Marketing expenses 22000 Trade payables 27500 Trade receivables 36000 Bank overdraft 28 500 Electricity and water 10650 Insurance 6500 Capital accounts Marcel 80000 Naomi 60000 Current accounts at 1 May 2018 Marcel 300 Credit Naomi 5100 Credit Drawings Marcel 10000 Naomi 12000 Additional information at 30 April 2019 1 Inventory was valued at $36400. 2 The annual insurance premium of $4600 was paid on 1 November 2018. 3 General expenses, $1150, were outstanding. 4 Wages and salaries included the salary paid to Marcel. 5 Depreciation is to be charged on all non-current assets owned at the end of the year as follows: Premises 2% per annum on cost Motor vehicles 25% per annum using the diminishing (reducing) balance method Fixtures and fittings 20% per annum using the straight-line method 6 The provision for doubtful debts is to be maintained at 5%. 7 A cheque payment of $1300, made to a credit supplier on 15 April, had not been recorded in the books.

1. (a)Prepare the income statement and appropriation account for the year ended 30 April 2019.[20]
2. (b)Prepare the current accounts for the year ended 30 April 2019 on the next page. Balance the accounts and bring down the balances on 1 May 2019.[6]
3. (c)Prepare the statement of financial position at 30 April 2019.[14]