The partnership agreement of Madi-Maxi Traders provided for the following:
Balances on 1 March 20.19:
Capital: Madi R 125 000
Maxi R 85 000
Current Account: Madi R 24 000 Maxi R 8 000 (debit)
Net profit for the period: R 366 000 Transactions during the year, not included in profit:
1. Madi will be full-time employed and will receive a monthly salary of R 12 000.
2. Interest on drawings to be charged at 15% per annum.
3. Interest on capital will be paid at 12% per annum.
4. Interest on current accounts will be charged at 7% per annum.
5. The partners will share profits in the ratio of capital contributed.
6. On 1 July 20.18, Madi withdrew R 10 000 in cash. On 1 December 20.18, Madi withdrew goods at a cost of R 5 000, this was drawings against expected profits.
7. Madi drew R 6 000 of his salary at the end of each month.
REQUIRED:
Record the journal entries for Madi-Maxi Traders for the year ended 29 February