Use the information provided above to prepare the statement of changes in equity (current accounts only) for the year ended 30 June 2021.

QUESTION TWO [20] Paul and Henry operated their own physio-therapist practices as sole proprietors. On 1 January 2016 they formed a partnership and provided the following information for the financial year ended 30 June 2021. Their profit and loss account was prepared correctly and the account showed a profit of R850 000 which was transferred to the Appropriation account. Other relevant information provided for the preparation of the statement that shows the distribution of profits to the partners for the current financial year is as follows: 1. Information from the capital accounts: Paul R 544 800 Hendry R 454 000 Total R 998 800 46 000 46 000 Date and detail 1 July 2020 Balance b/d 1 January 2021 Additional capital Balance 31 March 2021 Withdrawal of capital Balance c/d 544 800 500 000 1 044 800 (44 800) (44 800) 1 000 000 500 000 500 000 2. Balances of the partners' current accounts at 1 July 2020 were as follows: Partner: Paul - R62 000 - Debit balance Partner: Hendry - R87 000 Credit balance . 3. Drawings: general for the year ended 30 June 2021 were as follows: Partner: Paul - R75 000 Partner: Hendry - R91 000 4. The partnership agreement provided for the following: Interest to be provided on each partners' capital account at 10% per year on a pro-rata basis. Interest to be provided on opening balances of current accounts at 5% per year. . 3 3 Each partner to be allocated a salary of R10 000 per month for the full year ie 12 months. Hendry to be allocated a bonus calculated at 2% of the profit for the year before any other appropriation. Paul and Hendry share remaining profits or losses equally. 3. Drawings: general for the year ended 30 June 2021 were as follows: Partner: Paul - R75 000 Partner: Hendry - R91 000 . 4. The partnership agreement provided for the following: . Interest to be provided on each partners' capital account at 10% per year on a pro-rata basis. Interest to be provided on opening balances of current accounts at 5% per year. . Each partner to be allocated a salary of R10 000 per month for the full year ie 12 months. . Hendry to be allocated a bonus calculated at 2% of the profit for the year before any other appropriation. Paul and Hendry share remaining profits or losses equally. . Required: Use the information provided above to prepare the statement of changes in equity (current accounts only) for the year ended 30 June 2021. (25) Use the following format: Capital accounts section is NOT required. The Total column may be omitted. Show all workings. Paul and Hendry Physio-therapists Statement of changes in equity for the year ended 30 June 2021(in Rands) Paul - R Hendry-R Appropriation Current Accounts only Balances at 1 July 2020 Profit for the year Appropriations: Interest on capital Interest on current account Salaries Bonus Remaining profits Share of profits Drawings: General Balance at 30 June 2021