QUESTION THREE [20] Adax Designs Services is a partnership with Adam and Max as partners. The partnership has been operating successfully for a number of years now. The partners have a written partnership agreement. The following information was extracted from the accounting records of Adax. Design Services for the financial year ended 28 February 2021: R 835 000 (65 000) 270 000 103 000 400 000 Balances in the ledger as at 28 February 2021 Land and buildings at cost Accumulated depreciation: buildings Equipment at carrying amount Debtors Capital- Andile Capital- Sipho Current account- Andile Credit balance (1 March 2020) Current account -Sipho - Debit balance (1 March 2020 Drawings - Andile: General Drawings - Sipho: General Net profit for the year ended 28 February 2021 300 000 40 000 20 000 130 000 102 000 800 000 BACHELOR OF COMMERCE YEAR 1 - ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE . The following must still be taken into account: 1. The partnership agreement makes provision for the following: Interest on capital must be provided at 12% per year on the balances in the capital accounts for the period 1 March 2020 to 31 August 2020. The interest rate increases to 15% per year for the remainder of the year ie 1 September 2020 to 28 February 2021. The capital accounts remained unchanged. Interest on current accounts must be provided at 12% per year on the opening balances of the current accounts. The partners are entitled to the following monthly salaries: Andile R18 000 per month for a full year. Sipho R20 000 per year for the full year. Andile and Sipho withdrew 50% of their monthly salaries in cash as drawings. These amounts are not included in the drawings account shown above. Sipho is entitled to a special bonus equal to 2,5% of the net profit for the year. . Andile and Sipho share profits and losses in the ratio of 3:2 respectively. Required: Use the information provided above to prepare the statement of changes in equity (current accounts only) for the year ended 28 February 2021. Use the following format: Capital accounts section is NOT required. BACHELOR OF COMMERCE YEAR 1 - ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE Adax Design Services Statement of changes in equity for the year ended 28 February 2021 Current Accounts only Andile - R Sipho - R Appropriation Balances at 1 March 2020 Profit for the year Appropriations: Interest on capital Interest on current accounts Salaries -partners Bonus- Sipho Remaining profits Share of profits Drawings Balance at 28 February 2021