QUESTION5 (20 Marks)

The information given below was extracted from the accounting records of Britar Traders, a partnership business with Brian and Taryn as partners.

REQUIRED

Use the information provided to prepare the Statement of Changes in Equity for the year ended 29 February 2020.

INFORMATION

Extract from the ledger of Britar Traders as at 29 February 2020

	Debit	Credit
	R	R
Capital: Brian		900 000
Capital: Taryn		600 000
Current a/c: Brian (01 March 2019)		50 000
Current a/c: Taryn (01 March 2019)	30 000
Drawings: Brian	350 000
Drawings: Taryn	250 000

The following must be taken into account:

1.	On 29 February 2020 the Statement of Comprehensive Incomec reflected, amongst others, the
	following:
	Sales		R1 200	000
	Sales returns		R50	000
	Net profit		R700	000
2.	The partners earn interest at 12% p.a. on their capital balances. Note:	Brian increased his capital
	balance by R100 000 on 01 September 2019 whilst Taryn decreased her capital balance by R100 000
	on the same date.
3.	The partners were entitled to the following monthly salaries from 01 March 2019 to 30 November 2019:
	Brian R13 000
	Taryn R14 000
	The partners salaries were increased by 10% with effect from 01 December 2019.
4.	Taryn is entitled to a special bonus equal to 10% of the net sales for the financial year.
5.	The remaining profit/loss must be shared equally between Brian and Taryn.