XYZ Traders: DATA-SET PROVIDED FOR THE YEAR ENDED 31 DECEMBER 2022 Account Debit Credit Bank charges 1 300 Cleaning 1 500 Computer equipment 12 500 Cost of sales 32 000 Credit losses 420 Depreciation 2 300 Fuel and oil 56 000 Garden maintenance 1 300 Goods sold 125 000 Interest on loan 2 600 Interest received 5 800 Municipal services 6 850 Printing and stationery 16 715 Repairs and maintenance: Building 5 200 Repairs and maintenance: Vehicles 6 850 Salaries and wages 35 850 Services rendered 560 000 Staff welfare 650 Telephone 18 600 Capital: Mr Richard 450 000 Capital: Mr Lionel 375 000 Drawings: Mr Richard 35 000 Drawings: Mr Lionel 27 000 Current account: Mr Richard 2 500 Current account: Mr Lionel 6 400 Retained income 42 500 Land 400 000 Buildings 850 000 Accumulated depreciation on buildings 21 000 Vehicles 130 000 Accumulated depreciation on vehicles 65 000 Equipment and electronics 52 000 Accumulated depreciation on equipment and electronics 2 200 11% Long-term loan 156 000 Bank: FNB 2 500 Bank: ABSA 125 665 Debtors control account 60 000 Allowance for credit losses 7 400 Creditors control account 90 000 Petty cash 5 600 Inventory: Stationery 4 000 Inventory: Materials 25 000 SARS: Provisional Tax paid 15 000 SARS: VAT 5 600 SARS: Tax payable 23 000 1 934 900 1 934 900 Additional information The partnership agreement stipulates that: 1. Interest of 3,5% is paid to the partners on the current account balances as at the first day of the financial year. 2. The interest on the capital accounts is calculated at 13%. Mr Richard contributed an additional R150 000 on his capital account on 1 July 2022, while Mr Lionel reduced his capital with R25 000 on the same date. 3. Mr Richard is entitled to a bonus of R75 000 before any profit shares are calculated. He opted to have it set-off against his drawings account annually. The bonus has not been awarded yet. 4. The partners share profits equally. Due to the set-off in the drawings accounts the agreement stipulate that partners can roll their drawings balances for a maximum of 6 months into the new financial year. You can assume that the profits before appropriations amounted to R425 000. The following transactions have not been accounted for: 1. The computer equipment purchased during the year was debited to the computer equipment expense account. The items were purchased on the last day of the financial year and should be depreciated at 33%. 2. The final income tax assessment was received and recorded at R23 000. Provisional tax payments have been recorded for the year. 3. Defective materials inclusive of VAT at 15% to the value of R1 500 was returned to a supplier. A debit note was received but the transaction has not been recorded yet. 4. A customer returned goods sold for R5 300 for a credit on her account. The company has a 15% markup policy. 5. Mr. Richards bank card has been stolen and he needed to settle the school account on/before the examinations could be finalised. The partners agreed that the payment could be affected by the accountant. The debit of R 5 000 was passed to the salaries and wages account. 6. The loan is repayable in 3 equal instalments with the first instalment due on 30 June 2023.

QUESTION ONE Record the additional information transactions in the general journal for the year ended 31 December 2022.

QUESTION TWO Prepare the statement of changes in equity of XYZ Traders as at 31 December 2022.