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QUESTION 4 PARTNERSHIPS (20 MARKS) The informaton given below was extracted from the accounting records of Simmond Traders, a partnership business with Simon and Mondli as partners. REQUIRED Prepare the Statement of Changes in Equity for the year ended 29 February 2016. Use the following format STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 29 FEBRUARY 2016 Capital Accounts Simon (R) Mondli (R) Total (R) Changes in capital Balance at 29 February 2016 Current Accounts Simon (R) Mondli (R) Total (R) Net profit for the year Interest on capital Bonus Profit Share Drawings Balance at 29 February 2016 INFORMATION Balances in the ledger as at 29 February 2016 Capital: Simon 500000 Mond Curent alc: Simon (01 March 2015) Cument alc: Mondli (01 March 2015) Drawings: Simon 20 000 (DR) 30 000 (CR) 200000 240 The following must be taken into account: The net profit according to the Profit and loss account amounted to R500 000 on 29 February 2016 (a) (c) The partnership agreement makes provision for the following Interest on capital must be provided at 12% per annum on the balances in the capital accounts. Note: Simon increased his capital by R100 000 on 01 September 2015. The capital change has been recorded. The partners are enoitled to the following monthly salaries: Simon Mondli R13 000 R12 500 Simon is entled to a special annual bonus of R30 000. Simon and Mondli share the remaining profits or losses equally

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