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.

Extract from the ledger of Mansel Traders on $29$ February $2024($end of the financial year$)$

$\backslash$begin$\{$tabular$\}\{|$l$|$r$|$r$|\}$

$\backslash$hline & $\backslash$multicolumn$\{1\}\{$c$|\}\{$ Debit $($R$)\}$ & $\backslash$multicolumn$\{1\}\{$c$|\}\{$ Credit $($R$)\}\backslash \backslash$

$\backslash$hline Capital: Mandy & & $800000\backslash \backslash$

$\backslash$hline Capital: Selina & & $200000\backslash \backslash$

$\backslash$hline Current a$/$c: Mandy $(01$ March $2023)$ & & $60000\backslash \backslash$

$\backslash$hline Current a$/$c: Selina $(01$ March $2023)$ & $70000$ & $\backslash \backslash$

$\backslash$hline Drawings: Mandy & $320000$ & $\backslash \backslash$

$\backslash$hline Drawings: Selina & $180000$ & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

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 $15\backslash \%$ 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 entitled to a bonus of R$20000$ plus $\backslash (10\backslash \%\backslash )$ of the net profit $($before any appropriations$).$

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