QUESTION $2$

REQUIRED

Prepare the Statement of Changes in Equity for the year ended $29$ February $2024.$

INFORMATION

Charles and Toni are partners in a business called Charlton Traders. The following information relates

to the financial year ended $29$ February $2024$:

The following must be considered:

$(1)$ The net profit according to Statement of Comprehensive Income for the year ended $29$ February

$2024$ amounted to R$1000000.$

$(2)$ The partners are entitled to interest on their capitals at a rate of $15\%$ per year. Charles increased

his capital contribution by R$300000$ on $01$ September $2023.$ The capital change has been

recorded.

$(3)$ The partners are entitled to the following salaries:

Charles R$21000$ per month

Toni R$23000$ per month

$(4)$ Charles is entitled to a special bonus equal to $10\%$ of the net profit $($before any appropriations$).$

$(5)$ The remaining profit or shortfall must be shared between Charles and Toni in the ratio $3$:$2$

respectively.