QUESTION $2$

$(20$ Marks$)$

REQUIRED

Prepare the Statement of Changes in Equity for the year ended $29$ February $2024.$

INFORMATION

The information given below was extracted from the accounting records of Benson Traders, a partnership business with Bennie and Sonny as partners.

$\backslash$table$[[$Extract from the ledger of Benson Traders as at $29$ February $2024,$Credit $($R$),],[,$Debit $($R$),1000000],[$Capital: Bennie,,$800000],[$Capital: Sonny,,$80000],[$Current a$/$c: Bennie $(01$ March $2023),6000,],[$Current a$/$c: Sonny $(01$ March $2023),,],[$Drawings: Bennie,$500000,],[$Drawings: Sonny,$600000,]]$

The following must be considered:

$(1)$ The Statement of Comprehensive Income for the year ended $29$ February $2024$ reflected a net profit of $R1200000.$

$(2)$ The partnership agreement provided for interest on capitals at $15\%$ p$.$a$.$ on the balances in the capital accounts. However, the partners agreed to increase the interest rate to $18\%$ p$.$a$.$ with effect from $01$ September $2023.$ Bennie also increased his capital contribution by R$200000$ on the same date. The capital change has been recorded.

$(3)$ The partners are entitled to the following monthly salaries:

Bennie R$20000$

Sonny R$18000$

$(4)$ Sonny is entitled to a special bonus of $10\%$ of the net profit $($before any appropriations$).$

$(5)$ The balance of the profit or loss must be shared between Bennie and Sonny in the ratio of their capital balances at the beginning of the financial year.