Use the information below and complete a Statement of Equity Change, Note 7 & 8 in the accounting records of Sondela Dealers, a Partnership between Mr Peters and Mr Smith.

Balances on 1 July 2013:

Capital account: Mr Smith R250 000

Capital account: Mr Peters R120 000

Profit and loss account (Net profit) R970 000

Additional information obtained from the partnership agreement:

1. Interest on capital is provided at 5% per annum on capital balances.

2. Each partner is entitled to the following monthly salary:

Mr Smith R 3 000

Mr Peters R 2 500

These salaries have not yet been recorded. However, Mr Smith has withdrawn his full salary for the year, while Mr Peters has not yet withdrawn his salary for June 2014.

3. The remaining profit is to be shared according to the balances on the capital accounts of the partners as on 1 July 2013