Paul and Justin began their partnership on 1 July 2015 by contributing $320000 and $280000 respectively. During the first year of business, Justin contributed another $40000 and Paul with¬drew $20000 of his capital investment. The profit for the year ended 30 June 2016 of $160000 was divided evenly between the partners. During the year Paul withdrew $25000 from profits and Justin withdrew $20 000 of his share of the profits.

Required
Prepare a statement of changes in partner’s equity for the year ended 30 June 2016 using both method 1 and method 2.