Question
Ash and Leigh are partners in a business called Ashleigh Traders. REQUIRED Use the information provided below to prepare the Statement of Changes in Equity
Ash and Leigh are partners in a business called Ashleigh Traders. REQUIRED Use the information provided below to prepare the Statement of Changes in Equity for the year ended 29 February 2020. Use the following format: STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 29 FEBRUARY 2020 Capital Accounts Ash Leigh Total Balance at 28 February 2019 Changes in capital Balance at 29 February 2020 Current Accounts Balance at 28 February 2019 Net profit for the year Salaries Interest on capital Bonus Profit Share Drawings Balance at 29 February 2020 INFORMATION Extract from the ledger of Ashleigh Traders as at 01 March 2019 Debit Credit R R Capital: Ash 900 000 Capital: Leigh 800 000 Current account: Ash 120 000 Current account: Leigh 100 000 vmc Extract from the ledger of Ashleigh Traders as at 29 February 2020 R Drawings: Ash 350 000 Drawings: Leigh 250 000 The following must be taken into account: (a) The net profit according to the Profit and loss account amounted to R800 000. (b) The partners are entitled to the following monthly salaries: Ash Leigh R15 000 R18 000 (c) The partners are entitled to interest on their capital balances at a rate of 12% per year. Note: On 01 September 2019, Ash increased his capital contribution by R100 000. On the same date Leigh decreased her capital balance by R200 000. (d) Ash is entitled to a special bonus equal to 10% of the net profit before any of the above appropriations. (e) The remaining profit or shortfall must be shared equally
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