Fay Brown and Lynette King are in partnership trading as Faylyn Enterprise Ltd. ...

Fay Brown and Lynette King are in partnership trading as Faylyn Enterprise Ltd. On January 1, 2015 the following balances were extracted from the books of the partnership: Current Account Capital Account Fay $480,000 (Cr) $2,000,000 Lynette $270,000 (Dr) $1,000,000 The following additional information was also presented to you the financial accountant of the company: (v) Profits are to be shared in the ratio of the balances on the partner’s capital accounts on January 1, 2015. (vi) Interest on drawings is to be charged at 5% per annum, while partners are to receive 4% per annum on their capitals. (vii) The net operating profit for the financial year amounted to $2,950,000. (viii) Partners are to receive salaries as follows: Fay $500,000 per annum; and Lynette $400,000 per annum. (ix) Cash drawings for the year were: Fay $450,000 and Lynette $550,000. Required: (d) The partners capital accounts as at December 31,2015. (3 marks) (e) The partners’ current accounts as at December 31, 2015. (8 marks) (f) The Profit and Loss Appropriation Account for the period ending December 31, 2015. (9 marks)