[20] QUESTION TWO The information provided relates to ST Traders. The business is a partnership owned by Sam and Tom Tibs. The financial year ended on 28 February 2014. Information: 1. Extract from the Trial Balance on 28 February 2014 750 000 500 000 6 750 Capital: Sam Capital: Tom Current Account: Sam (1 March 2013 Current Account: Tom (1 March 2013 Drawings: Sam Drawings: Tom Loan: Drago Bank Bank (Cr Cash float Inventories (Trading Stock) Trade and other receivables Trade and other payables Sales Profit and loss (Net profit for the year 9 800 (Dr 820 000 7 750 (Cr) 1 300 28 620 37 500 32 300 1 120 000 2. Partners' earnings and drawings: Sam earns a salary of R102 000 per year. Tom earns 5% more than Sam Interest on capital is calculated at 8% pa. Tom's interest amounts to R40 000. Note that Sam increased his capital by R25 000 on 1 December 2013. This was recorded accordingly . * Tom is entitled to a production bonus equal to 1,5% of turnover. .The remaining profit or loss is shared between Sam and Tom in the ratio 3: 2 respectively. The remaining profit earned by Tom was R7 500 after all adjustments were done. Tom also withdrew 60% of his total earnings for this financial year. Sam ended with a credit balance of R32 550 on his current account