Question: QUESTION FOUR [20] The information given below was extracted from the accounting records of Total Limited, a partnership business with Glen and Murry as partners.
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QUESTION FOUR [20] The information given below was extracted from the accounting records of Total Limited, a partnership business with Glen and Murry as partners. The following must be taken into account: 1. On 30 June 2021 the Profit and Loss account reflected a net profit of R940 000. 2. Partners are entitled to interest at 14% p.a. on their capital balances. Note: Glen decreased his capital contribution by R90 000 on 01 July 2020. This capital decrease has been recorded. 3. Partners are entitled to the following monthly salaries: - Glen R13 000 for the first ten months of the financial year and R15 000 - for the next two months. - Murry R10 000 per month throughout the year. 4. Partner Murry is entitled to a bonus equal to 10% of the net profit before any of the above appropriations have been taken into account. 5. The remaining profit/shortfall must be shared equally between Glen and Murry. Required: Prepare the Statement of Changes in Equity for the year ended 30 June 2021
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