1 Gray, Wilkes and Booth are partners. They share profits and losses in the ratios of 3/8, 3/8 and 1/4 respectively. For the year ended 31 December 2003 their capital accounts remained fixed at the...

1

Gray, Wilkes and Booth are partners. They share profits and losses in the ratios of 3/8, 3/8

and 1/4 respectively.

For the year ended 31 December 2003 their capital accounts remained fixed at the following

amounts:

£

Gray 50,000

Wilkes 40,000

Booth 30,000

They have agreed to give each other 5 per cent interest per annum on their capital accounts.

In addition to the above, partnership salaries of £32,000 for Wilkes and £14,000 for Booth are to

be charged.

The net profit of the partnership before taking any of the above into account was £84,800.

Required:

Draw up the appropriation account of the partnership for the year ending 31 December 2003.