Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mani and Richi trade in partnership as MR Traders. The following is an extract from the trial balance for the year ended 31 December 2020:

image text in transcribed

Mani and Richi trade in partnership as MR Traders. The following is an extract from the trial balance for the year ended 31 December 2020: DR CR Capital Mani 18 000 Richi 14 000 Current Accounts Mani 2 600 8 000 Richi Drawings Mani 1 892 Richi 2 000 Additional information: 1. The partnership agreement stipulates the following: 1.1 Partners will receive 10% interest on capital annually and 8% interest is allowed on current accounts 1.2 Mani will receive a salary of R3 000 per annum and Richi a salary of R5 000 per annum. 1.3 Mani and Richi divide profits or losses in the ratio of 1:2 2. The net profit for the year ended 31 December 2020 was R5 183 Required: Prepare the Statement of Changes in Equity of MR Traders for the year ended 31 December 2020

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Future For Investors

Authors: Jeremy Siegel

1st Edition

140008198X, 978-1400081981

More Books

Students also viewed these Finance questions