Question
The information given below was extracted from the accounting records of Ndlove Traders, a partnership business with Brian and Taryn as partners. REQUIRED Use the
The information given below was extracted from the accounting records of Ndlove Traders, a partnership business with Brian and Taryn as partners. |
REQUIRED |
Use the information provided to prepare the Statement of Changes in Equity for the year ended 29 February 2020. |
INFORMATION |
Extract from the ledger of Britar Traders as at 29 February 2020
| Debit | Credit |
| R | R |
Capital: Brian |
| 900 000 |
Capital: Taryn |
| 600 000 |
Current a/c: Brian (01 March 2019) |
| 50 000 |
Current a/c: Taryn (01 March 2019) | 30 000 |
|
Drawings: Brian | 350 000 |
|
Drawings: Taryn | 250 000 |
|
The following must be taken into account: | ||
1. | On 29 February 2020 the Statement of Comprehensive Incomec reflected, amongst others, the following: | |
| Sales | R1 200 000 |
| Sales returns | R50 000 |
| Net profit | R700 000 |
2. |
The partners earn interest at 12% p.a. on their capital balances. Note: Brian increased his capital balance by R100 000 on 01 September 2019 whilst Taryn decreased her capital balance by R100 000 on the same date. | |
3. | The partners were entitled to the following monthly salaries from 01 March 2019 to 30 November 2019: Brian R13 000 Taryn R14 000 The partners salaries were increased by 10% with effect from 01 December 2019. | |
4. | Taryn is entitled to a special bonus equal to 10% of the net sales for the financial year. | |
5. | The remaining profit/loss must be shared equally between Brian and Taryn. |
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