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 Mansel Traders, a partnership business with Mandy and Selina as partners.

$\backslash$table$[[$Extract from the ledger of Mansel Traders on $29$ February $2024($end of the financial year$),,],[,$Debit $($R$),$Credit $($R$)],[$Capita: Mandy,,$800000],[$Capital: Selina,,$200000],[$Current a$/$c: Mandy $(01$ March $2023),,60000],[$Current alc: Selina $(01$ March $2023),70000,],[$Drawings: Mandy,$320000,],[$Drawings: Selina,$180000,]]$

The following must be considered:

$($a$)$ The net profit for the year ended $29$ February $2024$ amounted to R$600000.$

$($b$)$ The partners are entitled to interest on capital at $15\%$ per year. Note: Mandy increased her capital by R$400000$ on $01$ September $2023.$ Selina decreased her capital by R$200000$ on the same date. The entries to record the capital changes have been made.

$($c$)$ in terms of the partnership agreement the partners are entitled to the following monthly salaries:

Mandy

R$18000$

Selina

R$14000$

$($d$)$ Selina is entitied to a bonus of R$20000$ plus $10\%$ of the net profit $($before any appropriations$).$

$($e$)$ The balance of the profit $($shortiali$)$ must be shared botween Mandy and Selina in the ratio of their capital baiances as at the beginning of the financial year.