The following must be taken into account:

(a) The Statement of Comprehensive Income reflected a net profit of R900 000 on 28 February 2021.

(b) The partners are entitled to interest at 12% p.a. on their capital balances.

Note: Presley decreased his capital by R200 000 on 01 June 2020 whilst Tony increased his capital by

R200 000 on 01 September 2020. These capital changes have been recorded.

(c) The partners are entitled to the following monthly salaries for each of the two six-month periods

(d) Tony is entitled to a bonus equal to 5% of the net profit before any of the above appropriations have been taken

into account.

(e) The remaining profit/loss must be shared between Presley and Tony in the ratio 3:2 respectively.