Question
REQUIRED Prepare the Statement of Changes in Equity for the year ended 29 February 2024. INFORMATION The information given below was extracted from the accounting
REQUIRED Prepare the Statement of Changes in Equity for the year ended 29 February 2024. INFORMATION The information given below was extracted from the accounting records of Benson Traders, a partnership business with Bennie and Sonny as partners. Extract from the ledger of Benson Traders as at 29 February 2024 Debit (R) Credit (R) Capital: Bennie 1 000 000 Capital: Sonny 800 000 Current a/c: Bennie (01 March 2023) 60 000 Current a/c: Sonny (01 March 2023) 80 000 Drawings: Bennie 500 000 Drawings: Sonny 600 000 The following must be considered: (1) The Statement of Comprehensive Income for the year ended 29 February 2024 reflected a net profit of R1 200 000. (2) The partnership agreement provided for interest on capitals at 15% p.a. on the balances in the capital accounts. However, the partners agreed to increase the interest rate to 18% p.a. with effect from 01 September 2023. Bennie also increased his capital contribution by R200 000 on the same date. The capital change has been recorded. (3) The partners are entitled to the following monthly salaries: Bennie R20 000 Sonny R18 000 (4) Sonny is entitled to a special bonus of 10% of the net profit (before any appropriations). (5) The balance of the profit or loss must be shared between Bennie and Sonny in the ratio of their capital balances at the beginning of the financial year
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