The information given below was extracted from the accounting records of Veco Traders, a partnership business with Bobby and Vincent. Required: Prepare the Statement of Changes in Equity as at: 28 February 2021. INFORMATION Balances in the ledger 28 February 2019 Debit Credit Capital: Bobby 500 000 Capital: Vincent 300 000 Current account: Bobby (1 Mar 2020) 20 000 Current account: Vincent (1 Mar 2020) 15 000 Drawings: Bobby 250 000 Drawings: Vincent 200 000 Additional information 1.The net profit according to the Profit and Loss account amounted to R500 000 on 28 February 2021. 2.The partnership agreement made provision for the following: 1.Interest on capital must be provided at 15% per annum on the balances in the capital Accounts from 1 March 2020 to 31 August 2020. With effect from 1 September 2019 the interest rate on capital increases to 18% per annum. 2.The partners are entitled to the following monthly salaries: Bobby R11 000 Vincent R10 000 3.Bobby is entitled to a bonus of 15% of the net profit before any appropriations are made. 4.Bobby and Vincent share the remaining profits or losses in the ratio 3:2 respectively.
The information given below was extracted from the accounting records of Veco Traders, a
business with Bobby and Vincent.
Required:
Prepare the Statement of Changes in Equity as at: 28 February 2021.
INFORMATION
Balances in the ledger 28 February 2019
Debit Credit
Capital: Bobby 500 000
Capital: Vincent 300 000
Current account: Bobby (1 Mar 2020) 20 000
Current account: Vincent (1 Mar 2020) 15 000
Drawings: Bobby 250 000
Drawings: Vincent 200 000
Additional information
1.The net profit according to the
February 2021.
2.The partnership agreement made provision for the following:
1.Interest on capital must be provided at 15% per annum on the balances in the capital
Accounts from 1 March 2020 to 31 August 2020. With effect from 1 September 2019 the
interest rate on capital increases to 18% per annum.
2.The partners are entitled to the following monthly salaries: Bobby R11 000
Vincent R10 000
3.Bobby is entitled to a bonus of 15% of the net profit before any appropriations are made.
4.Bobby and Vincent share the remaining profits or losses in the ratio 3:2 respectively.
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