REQUIRED

Prepare the Statement of Changes in Equity for the year ended $29$ February $2024.$

INFORMATION

The information given below was extracted from the accounting records of Mansel Traders, a parthership business with Mandy and Selina as partners.

The following must be considered:

$($a$)$ The net profit for the year ended $29$ February $2024$ amounted to R$6000000.$

$($b$)$ The parthers are entitled to interest on capital at $15\%$ per year. Note: Mandy increased her capital by R$400000$ on $01$ September $2023.$ Selina decreased her capital by R $200000$ on the same date. The entries to record the capital changes have been made.

$($c$)$ In terms of the partnership agreement the partners are entitled to the following monthly salaries:

Mandy R$18000$

Selina R$14000$

$($d$)$ Selina is entitled to a bonus of R$20000$ plus $10\%$ of the net profit $($before any appropriations$).$

$($e$)$ The balance of the profit $($shorffall$)$ must be shared between Mandy and Selina in the ratio of their capital balances as at the beginning of the financial year.

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED $29$ FEBRUARY $2024$

Capital Accounts

Mandy

Selina

Total

Balance at $28$ February $2023$

Changes in capital

Balance at $29$ February $2024$

Current Accounts

Mandy

Selina

Total

Balance at $28$ February

$2023$

Net profit for the year

Balance at $29$ February $2024$

WORKINGS:

Interest on capital

Mandy

Selina