Prepare the Statement of Changes in Equity of Camray Traders for the year ended 28 February 2021 using template provided The following must be taken into account: (a) The net profit according to the statement of comprehensive income amounted to R1 400 000 on 28 February 2021. (b) The partnership agreement made provision for the following: ¦ Interest on capital must be provided at 18% per annum on the balances in the capital accounts. Note: Camy increased her capital by R240 000 on 01 September 2020. Raymond decreased his capital by R120 000 on the same date. The capital changes have been recorded. ¦ The partners are entitled to the following monthly salaries: Camy R26 000 Raymond R25 000 Note: The partners’ salaries were increased by 10% with effect from 01 December 2020. ¦ Camy and Raymond share the remaining profits or losses equally.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Prepare the Statement of Changes in Equity of Camray Traders for the year ended 28 February 2021 using template provided
The following must be taken into account:
(a) The net profit according to the statement of comprehensive income amounted to R1 400 000 on 28 February
2021.
(b) The
¦ Interest on capital must be provided at 18% per annum on the balances in the capital accounts.
Note: Camy increased her capital by R240 000 on 01 September 2020. Raymond decreased his capital by
R120 000 on the same date. The capital changes have been recorded.
¦ The partners are entitled to the following monthly salaries:
Camy R26 000
Raymond R25 000
Note: The partners’ salaries were increased by 10% with effect from 01 December 2020.
¦ Camy and Raymond share the remaining
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