Prepare the Statement of Changes in Equity for the year ended INFORMATION The information given below was extracted from the accounting records. Extract from the ledger Capital: Paul CREDIT 1000000 Capital: Maya CREDIT 800000Current a/c: Paul (01 March 2023) DEBIT 60000Current a/c: Maya (01 March 2023) CREDIT 80000Drawings: Paul DEBIT 500000Drawings: Maya DEBIT 600000 The following must be considered: 1. The Statement of Comprehensive Income for the year ended 29 February 2024 reflected a net profit of R1 200 000. 2. The partnership agreement provided for interest on capitals at 15% p.a. on the balances in the capital accounts. However, the partners agreed to increase the interest rate to 18% p.a. with effect from 01 September 2023. Paul also increased his capital contribution by R200 000 on the same date. The capital change has been recorded. 3. The partners are entitled to the following monthly salaries: Paul R20 000 Maya R18 000 4. Maya is entitled to a special bonus of 10% of the net profit (before any appropriations). 5. The balance of the profit or loss must be shared between Paul and Maya in the ratio of their capital balances at the beginning of the financial year.
Prepare the Statement of Changes in Equity for the year ended
INFORMATION
The information given below was extracted from the accounting records.
Extract from the ledger
Capital: Paul CREDIT 1000000
Capital: Maya CREDIT 800000
Current a/c: Paul (01 March 2023) DEBIT 60000
Current a/c: Maya (01 March 2023) CREDIT 80000
Drawings: Paul DEBIT 500000
Drawings: Maya DEBIT 600000
The following must be considered:
1. The Statement of Comprehensive Income for the year ended 29 February 2024 reflected a net
profit of R1 200 000.
2. The
capital accounts. However, the partners agreed to increase the interest rate to 18% p.a. with
effect from 01 September 2023. Paul also increased his capital contribution by R200 000 on
the same date. The capital change has been recorded.
3. The partners are entitled to the following monthly salaries:
Paul R20 000
Maya R18 000
4. Maya is entitled to a special bonus of 10% of the net profit (before any appropriations).
5. The balance of the profit or loss must be shared between Paul and Maya in the ratio of their
capital balances at the beginning of the financial year.
Step by step
Solved in 2 steps
