Instructions: All answers must be typed in and all workings must be shown.

QUESTION FOUR The information given below was extracted from the accounting records of Cranberry Traders, a partnership business with Arry and Berry as partners. 420 000 Extract from the ledger of Cranberry Traders as at 28 February 2020 Capital: Arry Capital: Berry Current alc: Arry (01 March 2019) Current alc: Berry (01 March 2019) Drawings: Arry Drawings: Berry Long-term loan: Fruity Bank Bank 280 000 28 000 DR 25 000 CR 63 000 109 000 100 000 6 700 CR Debtors control 40 600 Accrued income 1 400 Cash float 600 Creditors control 37 800 Income received in advance 900 Additional information: The following must be taken into account: (a) On 28 February 2020 the Profit and loss a/c reflected a net profit of R450 000. (b) The partnership agreement provided for interest on capital at 12% p.a. on the balances on the capital accounts. However, the partners agreed to increase the interest rate to 15% p.a. with effect from 01 December 2019. (c) The partners are entitled to the following monthly salaries: Arry R12 000 Berry R10 000 (d) (e) Note: The salaries of the partners were increased by 10% with effect from 01 January 2020 The balance of the profit must be shared equally between Arry and Berry. A repayment of R20 000 on the loan from Fruity Bank will be made on 1 November 2020. Required: Prepare the statement of changes in equity for the year ended 28 February 2020