Use the information provided below to prepare the Statement of Changes in Equity of Sooraya Enterprises/Partnership for the year ended 28 February 2022.
Use the information provided below to prepare the Statement of Changes in Equity of Sooraya Enterprises/Partnership for the year ended 28 February 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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REQUIRED
Use the information provided below to prepare the Statement of Changes in Equity of Sooraya Enterprises/Partnership for the year ended 28 February 2022.
INFORMATION
Extract from the ledger of Sooraya Enterprises on 28 February 2022
R
Capital: Soo 450 000 Capital: Raya 350 000
Current a/c: Soo (01 March 2021) Current a/c: Raya (01 March 2021)
Drawings: Soo Drawings: Raya
The following must be taken into account:
30 000 CR 25000 DR
220 000 260 000
1. On 28 February 2022 the Profit and Loss account reflected a net profit of R 880 000.
2. Partners are entitled to interest at 12% p.a. on their capital balances.
Note: Soo increased her capital contribution by R180 000 on 01 September 2021. The capital increase has been recorded.
3. The partners are entitled to the following monthly salaries for the first 6 months of the financial year:
Soo R15 000
Raya R11 000
From 01 September 2021, the partners will be entitled to annual salaries of R144 000 each.
4. Raya 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 Soo and Raya.
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