QUESTION 2REQUIREDPrepare the Statement of Changes in Equity for the year ended 28 February 2022INFORMATIONThe information given below was extracted from the accounting records of Stanger Traders, a partnershipbusiness with Stan and Gerald as partners.Balances in the ledger on 28 February 2022Capital: StanCapital GeraldCurrent a/c: Stan (01 March 2021)Current a/c: Gerald (01 March 2021)Drawings: StanDrawings: GeraldThe following must be considered:(a) The net profit for the year ended 28 February 2022 amounted to R1 000 000DebitR40 000500 000400 000CreditR800 000600 00090 000(b) The partnership agreement makes provision for the following:■ Interest on capital must be provided at 15% per annum on the balances in the capital accountsNote: The partners increased their capital contributions by R100 000 each on 28 February 2022. Thecapital changes have been recorded.The partners are entitled to the following monthly salaries:StanR10 000GeraldR12 000■ Stan is entitled to a special bonus equal to 10% of the net profit before any of the above appropriationsare consideredStan and Gerald share the remaining profit or loss in the ratio 3:2 respectively.

The statement of changes in equity refers to the financial statement which measures the changes in…

REQUIRED 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 Stanger Traders, a partnership business with Stan and Gerald as partners. Balances in the ledger on 28 February 2022 Capital Stan Capital: Gerald Current a/c: Stan (01 March 2021) Current a/c: Gerald (01 March 2021) Drawings: Stan Drawings: Gerald Debit R 40 000 500 000 400 000 Credit R 800 000 600 000 90 000

REQUIRED 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 Stanger Traders, a partnership business with Stan and Gerald as partners. Balances in the ledger on 28 February 2022 Capital Stan Capital: Gerald Current a/c: Stan (01 March 2021) Current a/c: Gerald (01 March 2021) Drawings: Stan Drawings: Gerald Debit R 40 000 500 000 400 000 Credit R 800 000 600 000 90 000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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