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On 1 January 2018, MANAL and ABRAR entered into a partnership contributing $350,000 and $250,000 respectively and sharing profits in the ratio of 3:1. ABRAR is allowed a salary of $16,750 per year. Interest on capital is allowed at 10% per annum. MANAL is entitled to receive a commission of $15,000. During the year, ABRAR withdrew $20,000 and MANAL $8,800; interest on the same being 10% per annum. Profit in 2018 before the above-mentioned adjustments was $112,000.

You are required to prepare

1. Draw up the key chart to show every partners share (1 mark)
2. The Profit and Loss Appropriation Account (2marks)
3. the partners Capital Accounts of MANAL and ABRAR. (2marks)

   	112,000
   	MANAL	ABRAR
   Capital
   Share of profit/loss
   salary
   Interest on capital 10%
   commission
   Drawings
   IOD

Dr	Profit and Loss Appropriation Account		Cr

Dr	Manal 's capital Account		Cr
		Manal 's capital

Dr	ABRAR 's capital Account		Cr
		ABRAR 's capital

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