How to prepare the statement of changes in equity for the year ended 31 December 2022 for the partnership which includes the movements pertaining to the admission of Almond, starting with Almond having a nil balance in his Capital and Current Accounts:

Their financial year-end is 31 December, and they share profits equally in the partnership. The partnership decided to admit a new member, Almond, to the partnership on 1 January 2022 on the following terms: 1. Almond must deposit R500 000 into the partnership bank account on 1 January 2022 which will be allocated to his Capital Account. 2. Almond is the only partner that receives interest on his Capital Account. Almond will receive interest of 10% per annum on the balance of his Capital Account. 3. Almond will not receive a salary. Salaries for the two existing partners will remain unchanged. Peanut will receive an annual salary of R100 000 Butter will receive an annual salary of R120 000. Additional information: The final balances on Peanut and Butters equity accounts in the financial statements for the year ended 31 December 2021 were as follows:

Peanut Butter

Capital accounts 1 000 000 1 000 000

Current accounts 130 1300 148 640

The partners can only withdraw amounts from their current accounts if agreed on by all partners. Peanut, Butter and Almond had drawings of R120 000, R100 000 and R50 000, respectively, for the financial year ended 31 December 2022. Profits or losses will be shared in a 2:2:1 ratio. All assets and liabilities are valued fairly, and no revaluations are required except for land with a carrying value of R180 000 which must be revalued to R580 000. Peanut and Butters goodwill is valued at R100 000 and should not be included in the records of the partnership. The partnership showed a net profit of R1 201 334 at 31 December 2022.