QUESTION 24

REQUIRED: Use the information provided below to prepare the Statement of Changes in Equity for the year ended 28 February 2023.

INFORMATION: The information given below was business with Bendoor and Sendoor as partners.

Balances in the ledger on 28 February 2023

Capital BENDOOR

Capital SENDOOR

Current account: BENDOOR (1 March 2022) Current account: SENDOOR (1 March 2022) Drawings BENDOOR

Drawings SENDOOR

Additional information

extracted from the accounting records of BenSenDoor Traders, a partnership

Debit

24 000 260 000 220 000

Credit

1 200 000 800 000 32 000

a) The net profit according to the Profit and loss account amounted to R900 000 on 28 February 2023.

b) The partnership agreement made provision for the following:

o Interest in capital must be provided at 18% per annum on the balances in the capital accounts. Note: The partners increased their capitals by R400 000 each on 01 September 2022. The capital changes have been recorded.

o The partners are entitled to the following monthly salaries:

Bendoor R18 000

Sendoor R16 000

o Bendoor is entitled to a bonus of 10% of the net profit before any appropriations are made.

Bendoor and Sendoor share profit and loss equally