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QUESTION 2 Prepare the Statement of Changes in Equity for the year anded 28 February 2021. 20 Marka INFORMATION The information given below was extracted

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QUESTION 2 Prepare the Statement of Changes in Equity for the year anded 28 February 2021. 20 Marka INFORMATION The information given below was extracted from the accounting records of Preston Traders, a partnership business with Presley and Tony as partners Extract from the trial balance of Preston Traders on 23 February 2021 Debit Credit R R Capital: Presley 600 000 Capital Tony 400 000 Current al: Presley (01 March 2020) 40 000 Current acTony (01 March 2020) 50 000 340 000 Drawings Presley The following must be taken into account: (a) The Statement of Comprehensive Income reflected a net profit o R900 000 on 28 February 2021. (b) The partners are entitled to interest at 12% pa on their capital balances Note Presley decreased his capital by R200 000 on 01 June 2020 whilst Tony increased his capital by R200 000 on 01 September 2020. These capital changes have been recorded. (c) The partners are entitled to the following monthly salaries for each of the two sw-month periods 01 March 2020 to 31 August 2020 01 September 2020 to 28 February 2021 Presley R16 000 R17 000 Tony R15 000 R16 000 Tony is entitled to a bonus equal to 5% of the net profit before any of the above appropriations have been taken into account e) The remaining profitloss must be shared between Presley and Tony in the ratio 32 respectively. QUESTION 2 Prepare the Statement of Changes in Equity for the year anded 28 February 2021. 20 Marka INFORMATION The information given below was extracted from the accounting records of Preston Traders, a partnership business with Presley and Tony as partners Extract from the trial balance of Preston Traders on 23 February 2021 Debit Credit R R Capital: Presley 600 000 Capital Tony 400 000 Current al: Presley (01 March 2020) 40 000 Current acTony (01 March 2020) 50 000 340 000 Drawings Presley The following must be taken into account: (a) The Statement of Comprehensive Income reflected a net profit o R900 000 on 28 February 2021. (b) The partners are entitled to interest at 12% pa on their capital balances Note Presley decreased his capital by R200 000 on 01 June 2020 whilst Tony increased his capital by R200 000 on 01 September 2020. These capital changes have been recorded. (c) The partners are entitled to the following monthly salaries for each of the two sw-month periods 01 March 2020 to 31 August 2020 01 September 2020 to 28 February 2021 Presley R16 000 R17 000 Tony R15 000 R16 000 Tony is entitled to a bonus equal to 5% of the net profit before any of the above appropriations have been taken into account e) The remaining profitloss must be shared between Presley and Tony in the ratio 32 respectively

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