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Peter and Pan are partners in Captain Hook Stationers. The following list of accounts show

balances as at 31 December 2022, except for those accounts that have been stated

differently.

Description of general ledger accounts: Amount - R

Office furniture and equipment at cost 525 000

Accumulated depreciation on office furniture and equipment 65 000

Inventory 84 560

Bank 579 895

Accounts receivables control 65 875

Allowance for credit losses 2 675

7,5% Long-term loan from Ruby Finance House 432 500

Accounts payable control 45 633

Capital: Peter - (Balance as at 1 January 2022) 120 000

Capital: Pan 150 000

Current account: Peter - (Debit balance as at 1 January 2022) 4 500

Current account: Pan (Credit balance as at 1 January 2022) 12 000

Drawings: General - Peter 35 000

Drawings: Salaries - Peter 96 000

Drawings: General - Pan 65 000

Profit for the year 628 022

Additional information:

Year end adjustments:

1. On 1 January 2022 Peter deposited sufficient money to increase his capital to

R150 000. The increase was correctly debited but incorrectly credited to the Accounts

payable control account.

2. Pan was paid a salary of R4 500 per month for the current financial year. All Pans

monthly salary payments were incorrectly recorded to the debit of the Accounts

Receivables control account. Peters salary payments of R8 000 per month were

recorded correctly.

3. Depreciation at the rate of 10% per year on the straight line method on office furniture

and equipment needs to be recorded.

Relevant information from the Partnership Agreement:

Interest must be calculated and recorded at the following rates at the end of each financial

period.

Interest is processed through the Partners current account. Interest needs to be taken into

account as follows; (Show all workings. Round of all calculations to the nearest Rand):

1. Interest on the Partners capital accounts must be calculated at 15% per year;

2.Interest on Current accounts must be provided at 7.5% per year on the opening

balances.

3.Interest of 5% is charged on the closing balances of the Drawings; General accounts.

4.In terms of the partnership agreement Peter is entitled to a salary of R8 000 per month

and Pan is entitled to a salary of R4 500 per month to be appropriated from profits.

5.The partners share profits and losses in the ratio of capitals contributed at the end of

business on the first day of the financial year.

Required:

Prepare the following for Captain Hook Stationers for the financial year ended 31 December 2022

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