Preparing Revenue Statement & Profit Allocation | Drumbell Music

Sales 150 000 Accounts Receivable 3 000 Provision for Doubtful Debts 300 Salaries and Wages 20 000 Bank Charges 50 Office Expenses 1 700 Rates 500 Partners Salary - Drum 3 000 - Bell 3 500 Bad Debts 400 Discount Allowed 300 Cash at Bank 885 Land 50 000 Buildings 20 000 Shop fittings 14 000 $217 335 $217 335 Adjustments: Interest is to be allowed on partners fixed Capital at 5%. Salaries due to partners - Drum $500. Adjust provision for doubtful debts to 12%% of accounts receivable Depreciation on equipment is 10% p.a. on cost. Charge interest on drawings at 5% Inventories at 31" April 2020 $17 000 D. Drum is a working partner and B. Bell is a non - working partner. Working Partners' salary is attributable to selling expenses. Required: (3) Prepare a fully classified Revenue Statement of Drumbell Music World for the year ended 31" April, 2020. (b) Prepare profit and loss appropriation statement for the year ended 31" April, 2020. (c) Prepare Current Account of B. Bell and D. Drum.