QUESTION ONE [25] Pitso and Steve are partners operating a business Topless Pro Services. The information that follows is relevant to the business activities of the partnership for the year ended 30 June 2022 Pitso and Steve share in profits and losses in the ratio of 32 respectively. Topclass Pro Services Extract of relevant account balances a ces as at 30 June 2022 Debit Credit R R Capital: Pitso 270000 Capital: Steve 270000 Current account Pitso: balance at 1 July 2021 76600 Current account Steve: balance at 1 July 2021 52900 Drawings for the year: Pro 68310 Drawings for the year: Steve 43470 Long term loan from Pitso 110000 Salaries paid to partners during the year: Pitso 144 000 Steve 126000 Profit for the year-before taking the any of the additional 765500 information into account Additional information: The following has been extracted from the partnership agreement 1. Interest must be calculated and recorded at the following rates at the end of each financial period. All interest must be processed through the current accounts of the partners. Interest rates are as follows: 1.1 Interest on capital must be calculated at 10% per year, 1.2 Interest at 10% per year on cument account balances at beginning of the year, 1.3 Interest on drawings accounts balances has been calculated as follows Pitso Steve R4 500 R2 900 2. The following salaries are payable to the partners for the current year Paso: R12 000 per month, and Steve R15 000 per month Year-end adjustments: 1. On 1 January 2022 Pitso contributed another R90 000 as capital to the pannership. It was agreed that the amount will be included in his fixed capital account. The transaction was correctly recorded as at 30 June 2022. 2. Pitso granted an unsecured loan to the partnership on 1 January 2022. According to the loan agreement, interest will be charged at 10% per year. The loan will be repaid in annual instalments beginning 31 December 2020. Interest on the loan is still to be calculated and recorded in the books of the partnership.