QUESTION 2 PARTNERSHIPS (20 MARKS) QUESTION 3 FINANCIAL STATEMENTS (20 MARKS) The information given below was extracted from the accounting records of Netcare Traders, a partnership business with Nettie and Caren as partners REQUIRED Prepare the Statement of Changes in Equity for the year ended 28 February 2018 INFORMATION Extract from the ledger of Netcare Traders on 28 February 2018 The trial balance, adjustments and additional information given below were extracted from the accounting records of Jem Traders on 28 February 2018, the end of the financial year REQUIRED Prepare the Statement of Comprehensive Income for the year ended 28 February 2018 Debit Credit Credit (R) Capital Nettie Capital: Caren Current account: Nettie (01 March 2016) Current account: Caren (01 March 2016) Drawings: Nettie Drawings: Caren 600 000 400 000 40 000 884 000 30 000 300 000 250 000 PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2018 Debit (R) Balance sheet accounts section Capital Drawings 264 000 Land and buildings 664 000 Equipment at cast 136 000 Accumulated depreciation on equipment Fixed deposit Mono Bank (10% pa) 30 000 Trading Inventory 162 000 Debtors control 47 000 Bank Cash float 290 000 Creditors control 2000 Loan: Mono Bank 61 000 (b) The following must be taken into account: The net profit according to the Profit and loss account amounted to R800 000 The partners are entitled to the following monthly salaries: Nettie R20 000 Caren R18 000 The partners are entitled to interest on their capitals at a rate of 15% per year. Nettie is entitled to a special bonus equal to 10% of the net profit before any of the above appropriations are taken into account The remaining profit or shortfall must be shared between Nettie and Caren in the ratio 3:2 respectively (d) 45 000 87 000 (e) 1 760 000 895 000 28 000 Nominal accounts section Sales Cost of sales Sales returns Salaries and wages Rent income Commission income Stationery Advertising Telephone Electricity and water 180 000 33 000 4000 7 000 50 000 17 000 24 000