Peter and Pan are partners in Captain Hook Stationers. The list of balances as at $31$ December $2022,$

before additional information was considered, is as follows:

Description Amount

Office furniture and equipment $525000$

Accumulated depreciation on office furniture and equipment $65000$

Inventory $84560$

Bank $675895$

Debtors control $65875$

Allowance for credit losses $2675$

Long$-$term loan $432500$

Creditors control $45632$

Capital: Peter $120000$

Capital: Pan $150000$

Current account: Peter $4500$

Current account: Pan $12000$

Drawings: Peter $35000$

Drawings: Pan $65000$

Profit for the year $628023$

Additional information:

$1.$ On $1$ January $2022$ Peter increased his capital to R$150000.$ The increase was charged to the

payables account in error.

$2.$ Peter earns a salary of R$8000$ per month while Pan earns R$4500$ per month.

The total salaries paid to Pan was incorrectly recorded in the debtors control account. The

salaries paid to Peter was correctly accounted.

$3.$ Interest of $15\%$ per year must be provided for on the capital.

$4.$ Interest on current accounts must be provided at $7\mathrm{.}5\%$ per year on the opening balances.

$5.$ Interest of $5\%$ is charged on the drawings.

$6.$ The partners share profits and losses in the ratio of capital contributed at the start of the

financial year.

$7.$ Office furniture and equipment depreciates at $10\%$ per year on the straight$-$line method.

Depreciation was not yet considered.

Required:

$1\mathrm{.}1$ Prepare the current account of Peter as at $31$ December $2022[15]$

$1\mathrm{.}2$ Prepare the statement of changes in equity as at $31$ December $2022$