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Prepare the Statement of Changes in Equity of Camray Traders for the year ended 28 February 2021. INFORMATION The information given below was extracted
Prepare the Statement of Changes in Equity of Camray Traders for the year ended 28 February 2021. INFORMATION The information given below was extracted from the accounting records of Camray Traders, a partnership business with Camy and Raymond as partners. The financial year ends on the last day of February each Balances in the ledger on 28 February 2021 Credit Debit R R Capital: Camy Capital: Raymond Current a/c: Camy (01 March 2020) Current a/c: Raymond (01 March 2020) Drawings: Camy Drawings: Raymond The following must be taken into account: 50 000 360 000 320 000 1 200 000 800 000 60 000 (a) The net profit according to the statement of comprehensive income amounted to R1 400 000 on 28 February 2021. (b) The partnership agreement made provision for the following: Interest on capital must be provided at 18% per annum on the balances in the capital accounts. Note: Camy increased her capital by R240 000 on 01 September 2020. Raymond decreased his capital by R120 000 on the same date. The capital changes have been recorded. The partners are entitled to the following monthly salaries: R26 000 Camy Raymond R25 000 Note: The partners' salaries were increased by 10% with effect from 01 December 2020. Camy and Raymond share the remaining profits or losses equally.
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