QUESTION ONE : Peter and Pan are partners in Captain Hook Stationers. The following list of accounts show balances as at 31 December 2022, except for those accounts that have been stated differently.

Description of general ledger accounts	Amount
Office furniture and equipment at cost	525000
Accumulated depreciation on office furniture and equipment	65000
Inventory	84560
Bank	579895
Accounts receivables control	65875
Allowance for credit losses	2675
7,5% Long-term loan from Ruby Finance House	432500
Accounts payable control	45633
Capital: Peter (Balance as at 1 January 2022)	120000
Capital: Pan	150000
Current Account: Peter - (Debit balance as at 1 January 2022)	4500
Current Account: Pan - (Credit balance as at 1 January 2022)	12000
Drawings: General - Peter	35000
Drawings: Salaries - Peter	96000
Drawings: General - Pan	65000
Profit for the year	628022

Additional information: Year end adjustments:

1. On 1 January 2022 Peter deposited sufficient money to increase his capital to R150 000. The increase was correctly debited but incorrectly credited to the Accounts payable control account.

2. Pan was paid a salary of R4 500 per month for the current financial year. All Pans monthly salary payments were incorrectly recorded to the debit of the Accounts Receivables control account. Peters salary payments of R8 000 per month were recorded correctly.

3. Depreciation at the rate of 10% per year on the straight line method on office furniture and equipment needs to be recorded.

Relevant information from the Partnership Agreement:

Interest must be calculated and recorded at the following rates at the end of each financial period. Interest is processed through the Partners current account. Interest needs to be taken into account as follows; (Show all workings. Round of all calculations to the nearest Rand): 1. Interest on the Partners capital accounts must be calculated at 15% per year; 2. Interest on Current accounts must be provided at 7.5% per year on the opening balances. 3. Interest of 5% is charged on the closing balances of the Drawings; General accounts. 4. In terms of the partnership agreement Peter is entitled to a salary of R8 000 per month and Pan is entitled to a salary of R4 500 per month to be appropriated from profits. 5. The partners share profits and losses in the ratio of capitals contributed at the end of business on the first day of the financial year.

Required: Prepare the following for Captain Hook Stationers for the financial year ended 31 December 2022. [QUESTIONS] !!!

1.1 Current Account : Peter - balanced at 31 December 2022 [15]

1.2 Statement of changes in equity for the year ended 31 December 2022. Use a format suitable to this type of business that clearly shows the appropriation in terms of the clauses extracted from the partnership agreement as listed above. [30]