Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. required use the information provided below to pre

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

50.1K

Verified Solution

Question

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.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

List all possible rational zeros given by the Rational Zeros Theorem (but don't check to see...

Finance
1.2K views

Today is 1 July 2019. John is 30 years old today. He is planning to purchase...

Basic Math
1.2K views

The organization and management of hospitals are different from and more complex than they are...

Accounting
1.2K views

Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc....

Accounting
1.2K views

Year Taxable Income Tax Rate 2018 20,000 30% 2019 (150,000) 30% 2020 90,000 25% 2021...

Accounting
1.2K views

Susan deposits $5,000 into a money-market account earning 7% per year, and keeps depositing twice...

Accounting
1.2K views

In year 0, Longworth Partnership purchased a machine for $57,250 to use in its business....

Accounting
1.2K views

Barrett, Inc., has a total debt ratio of .57, total debt of $317,000, and net...

Accounting
1.2K views

Using the Starbucks financial statements provided on Blackboard, calculate and interpret the days to sell...

Accounting
1.2K views

A company has a beginning retained earnings of $100,000. During the year, the company reported...

Accounting
1.2K views

Budget Leasing emiti 500 acciones preferentes convertibles de valor nominal de $20 a $22 por...

Finance
1.2K views

Assume Gillette Corporation will pay an annual dividend of $0.66 one year from now. Analysts...