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Questions 3: Partnerships (20 marks) The information below was extracted from the accounting records of...

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Accounting

Questions 3: Partnerships (20 marks) The information below was extracted from the accounting records of Nkosi Enterprises, a partnership business with Nkosi and Sikelela as partners. Capital: Nkosi 480 000 Capital: Sikelela 370 000 Current account: Nkosi (01 March 2021) 15 000 Current account: Sikelela (01 March 2021) 18 000 Drawings: Nkosi 81 000CR Drawings: Sikelela 128 000CR The following transactions must be taken into account: The net profit according to Profit and Loss account amounted to R680 500 The partners are entitled to the following salaries: Nkosi = R12 000 pm, Sikelela = R15 000 pm The partners are entitled to interest on their capitals at a rate of 15% per year. Nkosi is entitled to a special bonus equal to 10% of his annual salary. Sikelela increased his capital by R50 000 on 01 January 2022. Profit sharing between Nkosi and Sikelela will be shared equally. Required (20 marks) Prepare the statement of changes in equity for year ended 28 February 2022 Note: The statement must reflect changes to both capital and current account balances.

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