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Question ; prepare the statement of changes in equity for the year end 28 february 2021 royal traders
extract from the trial balance of preston traders on 28 february 2021
debit credit
capital : Presley 600 000
capital Tony 400 000
Current a-c Presley 01 march 2020 40 000
currentb a-c tony 01 march 2020 50 000
drawings Presley 340 000
drawing Tony 360 000
thev following mustb bev taken into account
a) the statement of comprehensive incomev reflected a netb profit of R900 000 on thev 28 feb 2021
b) the partners are entitled to interest at 12 percent p.a on their capital balances
c) the partners are entitled to the following monthly salaries for each of the two six month period
1 march 2020 to 31 august 2020 1 sept 2020 to 28 feb 2021
Presley R16000 R17 000
Tony R15 000 R 16 000
D) tony is entitled to a bonus equal to 5% of the net profit before any of the above appropriations have been taken into account.
e) the remaining profit -loss must be shared between presley and Tony in the ration 3;2 respectively
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