Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare the Statement of Changes in Equity for the year end 30 June 2021 Information: Ross-Lindley Traders Balances in the ledger on 30 June 2021.

image text in transcribedimage text in transcribed

Prepare the Statement of Changes in Equity for the year end 30 June 2021 Information: Ross-Lindley Traders Balances in the ledger on 30 June 2021. 1. On 30 June 2021 the Profit and loss a/c reflected a net profit of R250 000 . 2. Interest on capital at 12% p.a. on the balances capital accounts must be provided for. On 1 June 2020 Ross decreased his capital by R100 000. On 1 April 2021 Lindley increased his capital by R60 000 . The capital changes have been recorded. 3. Interest on drawings has been calculated on the daily balances of drawings accounts. Interest amounts are as follows: - Ross R2 250 - Lindley R2 750 4. The balance of the profit must be shared between Ross and Lindley in the ratio of their capital balances at the end of the financial year. Prepare the Statement of Changes in Equity for the year end 30 June 2021 Information: Ross-Lindley Traders Balances in the ledger on 30 June 2021. 1. On 30 June 2021 the Profit and loss a/c reflected a net profit of R250 000 . 2. Interest on capital at 12% p.a. on the balances capital accounts must be provided for. On 1 June 2020 Ross decreased his capital by R100 000. On 1 April 2021 Lindley increased his capital by R60 000 . The capital changes have been recorded. 3. Interest on drawings has been calculated on the daily balances of drawings accounts. Interest amounts are as follows: - Ross R2 250 - Lindley R2 750 4. The balance of the profit must be shared between Ross and Lindley in the ratio of their capital balances at the end of the financial year

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

ACCA Approved Study Text P7 Advanced Audit And Assurance

Authors: BPP

1st Edition

1472744349, 978-1472744340

More Books

Students also viewed these Accounting questions

Question

7. Define cultural space.

Answered: 1 week ago

Question

8. Describe how cultural spaces are formed.

Answered: 1 week ago