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QUESTION 2 Prepare the Statement of Changes in Equity for the year ended 28 February 2000. INFORMATION The information given below was extracted from the accounting records of Kingsley, a partnership business with Seba and Phuni as partners. Extract from the trial balance of Kingsley on 28 February 2000 Debit Credit R R Capital: Seba 600 000 Capital: Phuni 400 000 Current a/c: Seba (01 March 1999) 40 000 Current a/c: Phuni (01 March 1999) 50 000 Drawings: Seba 340 000 Drawings: Phuni 360 000 The following must be taken into account: (a) The Statement of Comprehensive Income reflected a net profit of R900 000 on 28 February 2000. (b) The partners are entitled to interest at 12% p.a. on their capital balances. Note: Seba decreased his capital by R200 000 on 01 June 1999 whilst Phuni increased his capital by R200 000 on 01 September 1999. These capital changes have been recorded. (C) The partners are entitled to the following monthly salaries for each of the two six-month periods: 01 March 1999 to 31 August 1999 01 September 1999 to 28 February 2000 Presley R16 000 R17 000 Phuni R15 000 R16 000 (d) Phuni 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 Phuni in the ratio 3:2 respectively. Phuni Kingsley Statement of changes in equity for the year ended 28 february 2000 Capital Accounts Seba Balance at 28 February 1999 Changes in capital Balance at 28 february 2000 Phuni Total Seba Current Accounts Balance at 28 February 1999 Net profit for the year Drawings Balance at 28 February 2000 Workings if any: Interest on capital Seba Phuni Phuni Salaries Seba