Prepare the Statement of Changes in Equity for the year ended 28 February 2022. INFORMATION The information given below was extracted from the accounting records of Sunray Traders, a partnership business with Sunny and Raymond as partners. Extract from the ledger of Sunray Traders as at 28 February 2022 DEBIT CREDIT R R Capital: Sunny 1 000 000 Capital: Raymond 600 000 Current a/c: Sunny (01 March 2021) 60 000 Current a/c: Raymond (01 March 2021) 40 000 Drawings: Sunny 300 000 Drawings: Raymond 400 000 The following must be taken into account: (a) The Statement of Comprehensive Income reflected a net profit of R900 000 for the year ended 28 February 2022. (b) The partnership agreement provided for interest on capital at 12% p.a. on the balances on the capital accounts. Note: Sunny increased his capital contribution by R200 000 on 01 June 2021 whilst Raymond decreased his capital contribution by R200 000 on 01 September 2021. The capital changes have been recorded. (c) The partners are entitled to the following monthly salaries from 01 March 2021 to 30 November 2021: Sunny R25 000 Raymond R20 000 Note: The salaries of the partners were increased by 10% with effect from 01 December 2021. (d)The balance of the profit/loss must be shared equally between Sunny and Raymond.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Prepare the Statement of Changes in Equity for the year ended 28 February 2022.
INFORMATION
The information given below was extracted from the accounting records of Sunray Traders, a
Sunny and Raymond as partners.
Extract from the ledger of Sunray Traders as at 28 February 2022
DEBIT
CREDIT
R
R
Capital: Sunny 1 000 000
Capital: Raymond 600 000
Current a/c: Sunny (01 March 2021) 60 000
Current a/c: Raymond (01 March 2021) 40 000
Drawings: Sunny 300 000
Drawings: Raymond 400 000
The following must be taken into account:
(a) The Statement of Comprehensive Income reflected a net profit of R900 000 for the year ended 28 February 2022.
(b) The partnership agreement provided for interest on capital at 12% p.a. on the balances on the capital accounts.
Note: Sunny increased his capital contribution by R200 000 on 01 June 2021 whilst Raymond decreased his
capital contribution by R200 000 on 01 September 2021. The capital changes have been recorded.
(c) The partners are entitled to the following monthly salaries from 01 March 2021 to 30 November 2021:
Sunny R25 000
Raymond R20 000
Note: The salaries of the partners were increased by 10% with effect from 01 December 2021.
(d)The balance of the
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