Capital accounts 1 October 2012

Cain 90000
Cain and Les are in partnership
Les 60000 They share profits and losses in the ratio of 3:2
Current accounts 1 October 2012 respectively.
Cain 700
Les 15500
Interest on drawings is 4%,
Drawings interest on capital is 5% per annum.
Cain 12000 Les receives an annual salary of $16 000.
Les 15000
purchase returns and sales returns 769 600
carriage inwards 250
carriage outwards 1500
bad debts 250
commission received 6000
Premises at cost 118000 1. Opening inventory 15,000
Office equipment at cost 60000
Motor vehicles at cost 22000
2. closing inventory 15300
Provision for depreciation - Premises 7080 3. Heat and light, $150, were outstanding and
Provision for depreciation - Office equipment 21600 general expenses $1010 were prepaid
Provision for depreciation - Motor vehicles 7200
purchases and Sales 20000 103769 4. Motor vehicle expenses, $ 190 were
Staff salaries 14170 prepaid
General expenses 23460
Heat and light 4760 5. The provision for doubtful debts is to be
Communication expenses 7680 maintained at 5% of trade receivables.
Motor vehicle expenses 3650
Discounts allowed 3400
6. Depreciation is charged on premises and
Discounts received 14000 office equipment at the rate of 6% and
Bank loan interest 3000
Bank loan (repayable 30 June 2019) 22717
12% on cost
Trade payables 1960
Trade receivables 10720
7. Motor vehicles are depreciated at the rate
Provision for doubtful debts 520 of 20% per annum on cost