Prepare the Statement of Changes in Equity for the year ended 28 February 2022.INFORMATIONThe information given below was extracted from the accounting records of Sunray Traders, a partnership business withSunny and Raymond as partners.Extract from the ledger of Sunray Traders as at 28 February 2022CREDITDEBITRCapital: Sunny1 000 000Capital: Raymond600 000Current alc Sumy (01 March 2021)60 000Current alc Raymond (01 March 2021)40 000Drawings: Sunny300 000Drawings Raymond400 000The following must be taken into account:(a)The Statement of Comprehensive Income refected a net profit of R900 000 for the year ended 28 February 2022(b)The partnership agreement provided for interest on capital at 12% p.a on the balances on the capital accounts.Note: Sunny increased his capital contribution by R200 000 on 01 June 2021 whilst Raymond decreased hiscapital contribution by R200 000 on 01 September 2021. The capital changes have been recorded.(c)The partrers are entided to the following monthly salaries from 01 March 2021 to 30 November 2021:Sunny R25 000Raymond R20 000Note: The salaries of the partners were increased by 10% with effect from 01 December 2021.(d)The balance of the profitloss must be shared equally between Sunny and Raymond.

Statement of changes in equity is the statement which shows about the fluctuations which has been…

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Business

Accounting

Prepare the Statement of Changes in Equity tor the year ended 28 February 2022.

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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Question

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 Sunray Traders, a partnership business with
Sunny and Raymond as partners.
Extract from the ledger of Sunray Traders as at 28 February 2022
CREDIT
DEBIT
R
Capital: Sunny
1 000 000
Capital: Raymond
600 000
Current alc Sumy (01 March 2021)
60 000
Current alc Raymond (01 March 2021)
40 000
Drawings: Sunny
300 000
Drawings Raymond
400 000
The following must be taken into account:
(a)
The Statement of Comprehensive Income refected a net profit of R900 000 for the year ended 28 February 2022
(b)
The partnership agreement provided for interest on capital at 12% p.a on the balances on the capital accounts.
Note: Sunny increased his capital contribution by R200 000 on 01 June 2021 whilst Raymond decreased his
capital contribution by R200 000 on 01 September 2021. The capital changes have been recorded.
(c)
The partrers are entided to the following monthly salaries from 01 March 2021 to 30 November 2021:
Sunny R25 000
Raymond R20 000
Note: The salaries of the partners were increased by 10% with effect from 01 December 2021.
(d)
The balance of the profitloss must be shared equally between Sunny and Raymond.

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