Disraeli and Gladstone are partners, sharing profits and losses in the ratio 2:1. They
have agreed that Disraeli should receive a salary of £9,000 and that interest on both
partners’ opening capital of 5% p.a. should be allowed. Disraeli’s opening capital
was £20,000, whereas Gladstone’s was £15,000. During the year ended 31 December
2013, Disraeli had drawings of £18,000 and Gladstone drew £14,000. Operating
profit for the year was £40,000. No interest was charged on partners’ drawings.
Show the relevant extracts from the partnership income statement for the year and its
statement of financial position at the year-end.
