The following information pertaining to Ganunyane Partnership is presented to you: Pre-adjustment trial balance of Ganunyane Partnership on 28 February 20.9 Fol. Debit (R) Credit (R) Statement of financial position section Capital: Maganu B1 300 000 Capital: Mphonyane B2 360 000 Current: Maganu (1 March 20.8) B3 96 000 Current: Mphonyane (1 March 20.8) B4 90 000 Drawings: Maganu B5 180 000 Drawings: Mphonyane B6 111 000 SARS (EMP201 control) B7 89 060 Land and building B8 832 100 Vehicles B9 810 000 Accumulated depreciation: Vehicles B10 384 000 Equipment B11 548 400 Accumulated depreciation: Equipment B12 338 400 Health & Lifestyle Medical fund B13 14 550 Fixed deposit: Martins Banking Group B14 600 000 Bank B15 438 318 Trade receivables B16 262 200 Trading inventory (1 March 20.8) B17 418 500 Trade payables B18 94 800 Mortgage bond: BOBS Bank (12%p.a.) B19 1 309 200 Creditors for salaries B20 341 820 Pagers Pension Fund B21 15 270 Petty cash B22 3 000 Cash Float B23 6 000 Nominal accounts section Sales N1 1 737 900 Sales returns N2 41 700 Purchases returns N3 38 100 Rent income N4 40 890 Credit losses N5 19 500 Settlement discount received N6 6 090 Purchases N7 527 700 Interest on fixed deposit N8 30 000 Credit losses recovered N9 4 980Interest on mortgage bond N10 144 012 Import tariffs N11 15 240 Salaries and wages N12 426 000 Insurance N13 78 000 Carriage on purchases N14 51 840 Interest income N15 9 735 Interest expense N16 8 550 Settlement discount granted N17 26 208 Rates and taxes N18 108 360 Printing and stationary N19 34 050 Packing materials N20 25 500 Interest on bank overdraft N21 6 093 Medical Fund contributions N22 110 640 Pension fund contributions N23 63 900 Repairs and maintenance N24 44 130 General expenses N25 56 490 5 649 113 5 649 113The following adjustment must still be taken into account on 28 February 20.9: Adjustments relating to the trading- and profit and loss accounts: 1. On 28 February 20.9, one of the partners, Miss Mphonyane, took merchandise for own use. These goods were to be sold for R 7 161, which constitutes a mark-up of 55 % on cost. This transaction has not been recorded as yet. 2. According to a physical stock-take, the following was on hand: Trading inventory, R 261 600. 41 reams of printing paper valued at R 51 each. 5 unused printer cartridges valued at R 170 each. Packing materials valued at R 10 200. 3. Depreciation must be provided for as follows: On vehicles at 331/3% per annum on cost. Take into account that a new delivery vehicle was bought for R 270 000 on 1 November 20.8. This has been properly recorded. On equipment at 20% per annum according to the diminishing balance method. Take into account that new office equipment was acquired on 1 April 20.8 at a cost price of R 180 000. This has been properly recorded. 4. R5550 relating to carriage on purchases was accidentally debited to the general expenses account during February 20.9. Correct the error. 5. The tenant moved into the building on 1 August 20.8. Rent payments were payable in advance, starting on 1 August 20.8. Rent payments were increased by 10% as from and including the premiumfor 1 January 20.9. At 28 February 20.9, the rent payments for March and April 20.9 had been received in advance. 6. The rates and taxes for February 20.9 has not been paid as yet, R 10 320. 7. The fixed deposit was initiated on 31 July 20.8 and will mature on 30 June 20.11. The Initial interest rate was set at 10% p.a. (simple interest). The principle interest rate was raised to 12% p.a. with effect from 1 October 20.8, and subsequently another R 150 000 was invested in the fixed deposit on 1 November 20.8. All interest on the fixed deposit is credited to the current bank account of the business. 8. The insurance premium for March 20.9 has been prepaid. The insurance premium has remained unchanged since 1 January 20.8. 9. The interest on the mortgage bond for February 20.9 will only be debited by the bank on March 20.9. Interest is compounded annually, and debited to the current bank account. Mortgage payments of R 14 400 are made monthly via debit order. 10. The outstanding debt of a debtor, T. Thamaga, must be written off as irrecoverable, R7 200. Create an allowance for credit losses of 5% of good book debts. Adjustments relating to the appropriation account (adjustments according to the partnership agreement): 1. interest on capital must be appropriated at 12% per annum. Take into consideration that Maganu made a further cash contribution to the partnership to the amount of R 60 000 on 1 January 20.9. This was properly recorded. 2. Interest on drawings must be charged at 14.5% p.a. as if the drawings were taken four months prior to the end of the financial year. 3. Interest on current accounts must be appropriated at 7.5% p.a. (on opening balances). 4. The partners must receive the following annual salaries: Maganu, R 175 000 Mphonyane, R 62 500 5. Mphonyane must receive a bonus of R 167 000 at the end of each financial year. 6. The remaining profit/loss must be divided 50/50 between Maganu and Mphonyane. 7. Journalise the preliminary adjustments that relate to the trading - and profit and loss accounts. Required 1.1 Prepare the statement of profit or loss and other comprehensive income of Ganunyane Partnership for the year ended 28 February 20.9. (25) 1.2 Prepare the following notes to the financial statements of Ganunyane Partnership: 1.2.1. Capital Accounts. 1.2.2. Current accounts