2. Max and Ruby are partners in a business sharing profit and loss in the ratio 3 : 1 . Their trial balance as at December 31, 2015 was as follows: The following additional information is also available: i. Stock at December 31,2015 is $120 , 000 ii. Interest on capital is to be paid at 5% iii. Interest on drawings is to be charged at 5% iv. Commission received is prepaid by $2 , 500 v. Provide for depreciation of fixtures 10% using the reducing balance method, and motor vehicle at 10% using the straight-line method. vi. Ruby is to be paid a salary of $10 , 000 Prepare Max and Ruby's statement of profit or loss and appropriation account, their current accounts, and the statement of financial position extract showing equity only..

1. 2. Max and Ruby are partners in a business sharing profit and loss in the ratio 3 : 1 . Their trial
balance as at December 31, 2015 was as follows: The following additional information is also
available: i. Stock at December 31,2015 is $120 , 000 ii. Interest on capital is to be paid at 5% iii.
Interest on drawings is to be charged at 5% iv. Commission received is prepaid by $2 , 500 v.
Provide for depreciation of fixtures 10% using the reducing balance method, and motor vehicle
at 10% using the straight-line method. vi. Ruby is to be paid a salary of $10 , 000 Prepare Max
and Ruby's statement of profit or loss and appropriation account, their current accounts, and the
statement of financial position extract showing equity only.