Q: CSTION 2 Asnold Spider and Taylor Man were in partners make and sell jewelry for men and w partnership as jewelers in Bloemfontein. They design, years and has built up a good reputation. The partnership had been operational for several company during the 2022 financial year [FY. To expand business they decided to convert to a the partnership and the company. This question essentially addresses 2 key aspects: PART A Determining the gross profit from manufacturing operations from a trial balance that still requires final adjustments for the year ended 31 December 2021. PART B Drafting sections of the partnership accounts: - relating to the financial position thereof at 31 December 2021; - the accounting recording required to close off the partnership accounts upon conversion to a private company on 30 June 2022; and - the statements of the private company immediately after conversion PART A The following is a preliminary trial balance for the Spider and Man partnership at 31 December 2021: Additional information to be considered for finalisation of the trial balance provided above: 1 Annual depreciation (for the partnership and the company) on fixed assets is provided as follows: 2 Expenditure has always been apportioned as follows: The partnership agreement makes provision for the following: 3 Expenditure and other items at 31 December 2021 Electricity owing \begin{tabular}{lr} Salaries and wages owing & 3118 \\ Rates paid in advance & 20865 \\ Insurance paid in advance & 21750 \\ & 4350 \end{tabular} \begin{tabular}{|l|l|c|} \hline \multicolumn{2}{|l|}{ REQIRED } & MARKS \\ \hline (a) & \begin{tabular}{l} Compile the Manufacturing and Trading Account (reflecting the gross profit) \\ for Spider and Man at 31 December 2021 from the trial balance provided and \\ after incorporating the additional information provided above; \end{tabular} & 23 \\ \hline (b) & \begin{tabular}{l} You may assume that the Profit and Loss for the year ended \\ 31 December 2021 for the partnership of Spider and Man amounted to \\ R745 465 after accounting for Man's salary of R58 000. \end{tabular} & \\ \begin{tabular}{l} Compile the current account for each partner for the year ended \\ 31 December 2021, inclusive of the summarized transactions for each, to \\ reflect the overall movement in their current accounts for the year. Set out the \\ accounts in tabular form. \end{tabular} & \\ \hline \end{tabular}