The following must be taken into account: (a) The Statement of Comprehensive Income reflected a net profit of R900 000 on 28 February 2021. (b) The partners are entitled to interest at 12% p.a. an their capital balances. Note: Presley decreased his capital by R200 000 on 01 June 2020 whilst Tony increased his capital by R200 000 on 01 September 2020. These capital changes have been recorded. (c) The partners are entitled to the following monthly salaries for each of the two six-month periods: 01 March 2020 to 31 August 2020 01 September 2020 to 28 February 2021 Presley R16 000 R17 000 Tony R15 000 R16 000 Tony is entitled to a bonus equal to 5% of the net profit before any of the above appropriations have been taken into account. (d) (e) The remaining profitlos must be shared between Presley and Tony in the ratio 3:2 respectively.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Prepare the Statement of Changes in Equity for the year ended 28 February 2021

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The following must be taken into account:
(a)
The Statement of Comprehensive Income reflected a net profit of R900 000 on 28 February 2021.
(b)
The partners are entitled to interest at 12% p.a. on their capital balances.
Note: Presley decreased his capital by R200 000 on 01 June 2020 whilst Tony increased his capital by
R200 000 on 01 September 2020. These capital changes have been recorded.
(c)
The partners are entitled to the following monthly salaries for each of the two six-month periods:
01 March 2020 to 31 August 2020
01 September 2020 to 28 February 2021
Presley
R16 000
R17 000
Tony
R15 000
R16 000
(d)
Tony is entitled to a bonus equal to 5% of the net profit before any of the above appropriations have been taken
into account.
(e)
The remaining profitloss must be shared between Presley and Tony in the ratio 3:2 respectively.
Transcribed Image Text:The following must be taken into account: (a) The Statement of Comprehensive Income reflected a net profit of R900 000 on 28 February 2021. (b) The partners are entitled to interest at 12% p.a. on their capital balances. Note: Presley decreased his capital by R200 000 on 01 June 2020 whilst Tony increased his capital by R200 000 on 01 September 2020. These capital changes have been recorded. (c) The partners are entitled to the following monthly salaries for each of the two six-month periods: 01 March 2020 to 31 August 2020 01 September 2020 to 28 February 2021 Presley R16 000 R17 000 Tony R15 000 R16 000 (d) Tony is entitled to a bonus equal to 5% of the net profit before any of the above appropriations have been taken into account. (e) The remaining profitloss must be shared between Presley and Tony in the ratio 3:2 respectively.
Extract from the trial balance of Preston Traders on 28 February 2021
Debit
Credit
R
R
Capital: Presley
600 000
Capital: Tony
400 000
Current alc: Presley (01 March 2020)
40 000
Current alc: Tony (01 March 2020)
50 000
Drawings: Presley
340 000
Drawings: Tony
360 000
Transcribed Image Text:Extract from the trial balance of Preston Traders on 28 February 2021 Debit Credit R R Capital: Presley 600 000 Capital: Tony 400 000 Current alc: Presley (01 March 2020) 40 000 Current alc: Tony (01 March 2020) 50 000 Drawings: Presley 340 000 Drawings: Tony 360 000
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