QUESTION 5 (20 Marks) REQUIRED Use the information provided below to prepare the Statement of Changes in Equity of Ashton Traders for the year ended 29 February 2020. Use the following format: Total (R) STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 29 FEBRUARY 2020 Capital Accounts Ashwin (R) Tony (R) Balance at 28 February 2019 Changes in capital Balance at 29 February 2020 Ashwin (R) Tony (R) Total (R) Current Accounts Balance at 28 February 2019 Net profit for the year Interest on capital Salaries Bonus Profit Share Drawings Balance at 29 February 2020 INFORMATION Ashwin and Tony are partners in a business trading as Ashton Traders. The following information is available for the financial year ended 29 February 2020: Extract from the ledger of Ashton Traders as at 29 February 2020 Debit R Credit R 600 000 400 000 40 000 Capital: Ashwin Capital: Tony Current a/c: Ashwin (01 March 2019) Current a/c: Tony (01 March 2019) Drawings: Ashwin Drawings: Tony 30 000 400 000 500 000 The following must be taken into account: (2) (3) On 29 February 2020 the Profit and Loss account reflected a net profit of R800 000 The partners are entitled to interest at 15% p.a. on their capital balances. Note: Ashwin increased his capital contribution by R200 000 on 01 September 2019. The capital change has been recorded. The partners are entitled to the following monthly salaries for the first six months of the financial year, Ashwin R15 000 Tony R20 000 From 01 September 2019, the partners will be entitled to monthly salaries of R24 000 each. Tony is entitled to a bonus equal to 10% of the net profit before any of the above appropriations have been taken into account. The remaining profit/shortfall must be shared equally between Ashwin and Tony. (4) (5) END OF PAPER