Question

The information given below was extracted from the accounting records of Veco Traders, a partnership business with Bobby and Vincent. Required:

Prepare the Statement of Changes in Equity as at: 28 February 2021

Balances in the Ledger 28 Feb 2019
		Debit	Credit
Capital : Bobby			500000
Capital : Vincent			300000
Current Account Bobby (1 march 2020)			20000
Current Account Vincent (1 march 2020)		15000
Drawings Bobby		250000
Drawings Vincent		200000

Additional information

1.The net profit according to the Profit and Loss account amounted to R500 000 on 28 February 2021.

2.The partnership agreement made provision for the following: 1.Interest on capital must be provided at 15% per annum on the balances in the capital Accounts from 1 March 2020 to 31 August 2020. With effect from 1 September 2019 the interest rate on capital increases to 18% per annum.

2.The partners are entitled to the following monthly salaries: Bobby R11 000 Vincent R10 000

3.Bobby is entitled to a bonus of 15% of the net profit before any appropriations are made. 4.Bobby and Vincent share the remaining profits or losses in the ratio 3:2 respectively.

USE FORMAT BELOW

Statement of Changes in equity as at: February 2021

Capital Accounts	Bobby	Vincent	Total
Balance at 28 Feb 2020
Changes in capital	-	-	-
Balance at 28 Feb 2021
Current Accounts	Bobby	Vincent	Total
Balance at 28 Feb 2020
Net profit for the year
Interest on capital
Salaries
Bonus		-
Profit share (3:2)
Drawings
Balance at 28 Feb 2021