The partners Josh, Kelly and Lee have been carrying out a trading business for several years. According to the terms of their partnership agreement, profits and losses are to be shared between Josh 50%, Kelly 30% and Lee 20%. The yearly salaries of Josh and Lee are $10,000 and $12,000 respectively. Interest of 10% is allowed on the partners’ capital account balances outstanding as at the beginning of the financial year. Interest of 10% is allowed or charged on current account balances outstanding at the beginning of the financial year. Interest at 10% is charged on drawings for the year irrespective of when the drawings were made. Interest of 15% is allowed on the loan accounts of the partners.

 The account balances at the beginning of the financial year (1^st April 2020) were:

  The drawings account balances as at 31^st March 2021 were:

For the year ended 31^st March 2021, the partnership recorded a net profit of $156,000. Josh and Lee were each entitled to one year salary for the financial year ended 31^st March 2021.