1 Black, Brown and Cook are partners. They share profits and losses in the ratios of 2/9, 1/3 and 4/9 respectively. For the year ended 31 July 2002, their capital accounts remained fixed at the...

1

Black, Brown and Cook are partners. They share profits and losses in the ratios of 2/9, 1/3 and

4/9 respectively.

For the year ended 31 July 2002, their capital accounts remained fixed at the following amounts:

£

Black 60,000

Brown 40,000

Cook 20,000

They have agreed to give each other 6 per cent interest per annum on their capital accounts.

In addition to the above, partnership salaries of £30,000 for Brown and £18,000 for Cook are to

be charged.

The net profit of the partnership, before taking any of the above into account was £111,000.

You are required to draw up the appropriation account of the partnership for the year ending

31 July 2002.