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REQUIRED Use the information provided below to prepare the Statement of Changes in Equity of...

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Accounting

REQUIRED
Use the information provided below to prepare the Statement of Changes in Equity of Sunray Traders for the
year ended 28 February 2023.
INFORMATION
EXTRACT FROM THE LEDGER OF SUNRAY TRADERS AS AT 28 FEBRUARY 2023
Debit Credit
R R
Capital: Sunny 600000
Capital: Raymond 400000
Current a/c: Sunny (01 March 2022)100000
Current a/c: Raymond (01 March 2022)60000
Drawings: Sunny 500000
Drawings: Raymond 700000
The following must be considered:
(a) On 28 February 2023 the Statement of Comprehensive Income reflected a net profit of R1400000.
(b) The partners are entitled to interest at 15% p.a. on their capital balances. Note: Raymond decreased
his capital contribution by R200000 on 31 August 2022 whilst Sunny increased his capital balance by
the same amount on 01 December 2022. These capital changes have been recorded.
(c) The partners are entitled to the following monthly salaries:
Sunny R25000
Raymond R20000
(d) Raymond is entitled to a bonus equal to 10% of his annual salary.
(e) The remaining profit/shortfall must be shared between Sunny and Raymond in the ratio of the capital
balances as at the beginning of the financial year.

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