e the following forma tement of changes in Capital accounts:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Use the following format:
Statement of changes in equity
Capital accounts:
Balance at
Balance at
Current accounts:
Appropriation
Balance at
Appropriations:
------
Balance at
Transcribed Image Text:Use the following format: Statement of changes in equity Capital accounts: Balance at Balance at Current accounts: Appropriation Balance at Appropriations: ------ Balance at
The information given below was extracted from the accounting records of Total Limited,
a partnership business with Glen and Murry as partners.
Information:
Extract from the ledger of Total Limited on 30 June 2021
R
Capital : Glen
400 000
Capital: Murry
300 000
Current a/c: Glen (01 July 2020)
45 000
CR
Current a/c: Murry (01 July 2020)
42 000
DR
Drawings: Glen
95 000
Drawings: Murry
110 000
The following must be taken into account:
1.
On 30 June 2021 the Profit and Loss account reflected a net profit of R940 000.
2.
Partners are entitled to interest at 14% p.a. on their capital balances.
Note: Glen decreased his capital contribution by R90 000 on 01 July 2020.
This capital decrease has been recorded.
3.
Partners are entitled to the following monthly salaries:
Glen R13 000 for the first ten months of the financial year and R15 000
for the next two months.
• Murry R10 000 per month throughout the year.
4.
Partner Murry is entitled to a bonus equal to 10% of the net profit before
any of the above appropriations have been taken into account.
5.
The remaining profit/shortfall must be shared equally between Glen and Murry.
Required:
Prepare the Statement of Changes in Equity for the year ended 30 June 2021.
Transcribed Image Text:The information given below was extracted from the accounting records of Total Limited, a partnership business with Glen and Murry as partners. Information: Extract from the ledger of Total Limited on 30 June 2021 R Capital : Glen 400 000 Capital: Murry 300 000 Current a/c: Glen (01 July 2020) 45 000 CR Current a/c: Murry (01 July 2020) 42 000 DR Drawings: Glen 95 000 Drawings: Murry 110 000 The following must be taken into account: 1. On 30 June 2021 the Profit and Loss account reflected a net profit of R940 000. 2. Partners are entitled to interest at 14% p.a. on their capital balances. Note: Glen decreased his capital contribution by R90 000 on 01 July 2020. This capital decrease has been recorded. 3. Partners are entitled to the following monthly salaries: Glen R13 000 for the first ten months of the financial year and R15 000 for the next two months. • Murry R10 000 per month throughout the year. 4. Partner Murry is entitled to a bonus equal to 10% of the net profit before any of the above appropriations have been taken into account. 5. The remaining profit/shortfall must be shared equally between Glen and Murry. Required: Prepare the Statement of Changes in Equity for the year ended 30 June 2021.
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