The information given below was extracted from the accounting records of Britar Traders, a partnership business with Brian and Taryn as partners. REQUIRED Use the information provided to prepare the Statement of Changes in Equity for the year ended 29 February 2020. INFORMATION Extract from the ledger of Britar Traders as at 29 February 2020 Debit R Credit R Capital: Brian 900 000 600 000 50 000 Capital: Taryn Current a/c: Brian (01 March 2019) Current a/c: Taryn (01 March 2019) Drawings: Brian Drawings: Taryn 30 000 350 000 250 000 The following must be taken into account: 1. On 29 February 2020 the Statement of Comprehensive Incomec reflected, amongst others, the following: Sales Sales returns Net profit R1 200 000 R50 000 R700 000 2. The partners earn interest at 12% p.a. on their capital balances. Note: Brian increased his capital balance by R100 000 on 01 September 2019 whilst Taryn decreased her capital balance by R100 000 on the same date. 3. The partners were entitled to the following monthly salaries from 01 March 2019 to 30 November 2019: Brian R13 000 Taryn R14 000 The partners' salaries were increased by 10% with effect from 01 December 2019. Taryn is entitled to a special bonus equal to 10% of the net sales for the financial year. The remaining profit/loss must be shared equally between Brian and Taryn. 4. 5.
The information given below was extracted from the accounting records of Britar Traders, a partnership business with Brian and Taryn as partners. REQUIRED Use the information provided to prepare the Statement of Changes in Equity for the year ended 29 February 2020. INFORMATION Extract from the ledger of Britar Traders as at 29 February 2020 Debit R Credit R Capital: Brian 900 000 600 000 50 000 Capital: Taryn Current a/c: Brian (01 March 2019) Current a/c: Taryn (01 March 2019) Drawings: Brian Drawings: Taryn 30 000 350 000 250 000 The following must be taken into account: 1. On 29 February 2020 the Statement of Comprehensive Incomec reflected, amongst others, the following: Sales Sales returns Net profit R1 200 000 R50 000 R700 000 2. The partners earn interest at 12% p.a. on their capital balances. Note: Brian increased his capital balance by R100 000 on 01 September 2019 whilst Taryn decreased her capital balance by R100 000 on the same date. 3. The partners were entitled to the following monthly salaries from 01 March 2019 to 30 November 2019: Brian R13 000 Taryn R14 000 The partners' salaries were increased by 10% with effect from 01 December 2019. Taryn is entitled to a special bonus equal to 10% of the net sales for the financial year. The remaining profit/loss must be shared equally between Brian and Taryn. 4. 5.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
Question
Transcribed Image Text:The information given below was extracted from the accounting records of Britar Traders, a partnership
business with Brian and Taryn as partners.
REQUIRED
Use the information provided to prepare the Statement of Changes in Equity for the year ended 29 February
2020.
INFORMATION
Extract from the ledger of Britar Traders as at 29 February 2020
Debit
Credit
R
R
Capital: Brian
Capital: Taryn
Current alc: Brian (01 March 2019)
900 000
600 000
50 000
Current alc: Taryn (01 March 2019)
Drawings: Brian
Drawings: Taryn
30 000
350 000
250 000
The following must be taken into account:
1. On 29 February 2020 the Statement of Comprehensive Incomec reflected, amongst others, the
following:
Sales
R1 200 000
Sales returns
R50 000
Net profit
R700 000
2.
The partners earn interest at 12% p.a. on their capital balances. Note: Brian increased his capital
balance by R100 000 on 01 September 2019 whilst Taryn decreased her capital balance by R100 000
on the same date.
3.
The partners were entitled to the following monthly salaries from 01 March 2019 to 30 November 2019:
Brian R13 000
Taryn R14 000
The partners' salaries were increased by 10% with effect from 01 December 2019.
Taryn is entitled to a special bonus equal to 10% of the net sales for the financial year.
The remaining profit/loss must be shared equally between Brian and Taryn.
4.
5.
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