QUESTION $3$

$$

$$

$$

REQUIRED

Use the information provided below to prepare the following for the financial year ended $29$ February $2024$:

$3\mathrm{.}1$

Statement of Net Investment of Partners

$(12$ marks$)$

$3\mathrm{.}2$

Current a$/$c: Stanley in the general ledger. Note: The partner$$s drawings must be

transferred to his current account. Balance the account.

$$

$$

$(8$ marks$)$

$$

$$

INFORMATION

The information given below was extracted from the accounting records of Stanger Traders, a partnership business with Stanley and Gerald as partners.

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

$$

Debit

Credit

$$

R

R

Capital: Stanley

$$

$1200000$

Capital: Gerald

$$

$600000$

Current a$/$c: Stanley $(01$ March $2023)$

$$

$40000$

Current a$/$c: Gerald $(01$ March $2023)$

$60000$

$$

Drawings: Stanley

$160000$

$$

Drawings: Gerald

$240000$

$$

$$

The following must be considered:

$($a$)$

The net profit for the year ended $29$ February $2024$ amounted to R$1000000.$

$($b$)$

The partners are entitled to interest on capital on their capital balances at $12\%$ per year from $01$

March $2023$ to $31$ August $2023.$ However, the rate was increased to $15\%$ per year with effect from $01$ September $2023.$

$($c$)$

The partners are entitled to the following monthly salaries:

$$

Stanley

R$15000$

$$

Gerald

R$13000$

$($d$)$

Stanley is entitled to a special bonus of R$40000.$

$($e$)$

The balance of the profit $($or shortfall$)$ must be shared between Stanley and Gerald in the ratio

of their capital balances.