(a)[9]
Prepare the statement of profit or loss for the year ended 31 December 2024. Use the space on page 4 to show your workings.
(b)[5]
Prepare each partner’s current account for the year ended 31 December 2024. Dates are not needed.
(c)[5]
Prepare the equity and liabilities section of the partnership’s statement of financial position at 31 December 2024.
(d(i))[2]
Calculate the effect on annual profits of Option A.
(d(ii))[2]
Calculate the effect on annual profits of Option B.
(e)[7]
Advise the partners which option they should choose. Justify your choice by discussing the advantages and disadvantages of both options.