Mr Matthews and Mrs Pietersen are partners in MP Traders. The list of balances at June before additional information was considered, is as follows:

Description Amount

Office furniture and equipment

Accumulated depreciation on office furniture and

equipment

Inventory

Bank

Debtors control

Allowance for credit losses

Longterm loan

Creditors control

Capital: Mr Matthews

Capital: Mrs Pietersen

Current account: Mr Matthews

Current account: Mrs Pietersen

Drawings: Mr Matthews

Drawings: Mrs Pietersen

Profit for the year

Additional information:

Depreciation of on the straightline method on the office furniture and equipment has not been calculated by the bookkeeper.

Rental of R was received for the period July to September

On July Mr Matthews increased his capital to R The increase was charged to the longterm loan. Mrs Pietersen reduced her capital contribution with R on February

Mr Matthews earns a salary of R per month while Mrs Pietersen earns R per month from November The total salaries paid to Mrs Pietersen was recorded in the debtors control account.

Interest of per year must be provided for on the capital.

Interest on current accounts must be provided at per year on the opening balances.

Interest of is charged on the drawings.

The partners share profits and losses in the ratio of capital contributed at the start of the financial year.

Prepare the statement of changes in equity as at June