QUESTION $2$

$(20$ Marks$)$

REQUIRED

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

INFORMATION

Charles and Toni are partners in a business called Chartton Traders. The following information relates to the financial year ended $29$ February $2024$ :

$\backslash$table$[[$Extract from the ledger of Charlton Traders on $29$ February $2024$:$],[,$Debit,Credit,$],[$Capital: Charles,R$,$R$,],[$Capital: Toni,,$1500000,],[$Current account: Charles $(01$ March $2023),,1200000,],[$Current account: Toni $(01$ March $2023),50000,60000,],[$Drawings: Charles,$500000,,],[$Drawings: Toni,$400000,,]]$

The following must be considered:

$(1)$ The net profit according to Statement of Comprehensive Income for the year ended $29$ February $2024$ amounted to R$1000000.$

$(2)$ The partners are entitled to interest on their capitals at a rate of $15\%$ per year. Charles increased his capital contribution by R$300000$ on $01$ September $2023.$ The capital change has been recorded.

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

Charles R$21000$ per month

Toni R$23000$ per month

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

$(5)$ The remaining profit or shortfall must be shared between Charles and Toni in the ratio $3\mathrm{.}2$ respectively.