QUESTION 3 (20 marks) The following information was taken from the books of Smart Practise Traders for the year ended 28 February 20.19, with Practise and Smart as partners in the business. Additional information: 1. Extract from a list of balances on 28 February 20.19: Capital: Practise Capital: Smart Current account Practise (1 March 20.18) Dr Cr R R 200 000 200 000 500 Current account Smart (1 March 20.18) 1 300 Drawings: Practise 45 840 Drawings: Smart 53 310 2. On 31 August 2018, partner Smart increased her capital by R50 000. This entry has not been recorded in the books of Smart Practise Traders. 3. The net profit for the year ended 28 February 20.19 amounted to R199 950. 4. Drawings of merchandise: Practise R5 000; Smart-R4 500 5. Cash withdrawn for salaries: Practise: R30 000 Smart R38 000 6. The Partnership agreement stipulates the following: 6.1 Partners are entitled to the following monthly salaries as of the start of the first year of operation (1 March 20.18): Practise: R3 200, Smart: R3 800. The salaries of both partners increase annually on the 1st of December by 15%. Page 8 of 15