Use the information provided below to prepare the Statement of Changes in Equity of Sunray Traders for the year ended 28 February 2023. INFORMATION EXTRACT FROM THE LEDGER OF SUNRAY TRADERS AS AT 28 FEBRUARY 2023 Capital: Sunny Capital: Raymond Current a/c: Sunny (01 March 2022) Current a/c: Raymond (01 March 2022) Drawings: Sunny Drawings: Raymond Debit R 60 000 500 000 700 000 Credit R 600 000 400 000 100 000 The following must be considered: (a) On 28 February 2023 the Statement of Comprehensive Income reflected a net profit of R1 400 000. The partners are entitled to interest at 15% p.a. on their capital balances. Note: Raymond decreased his capital contribution by R200 000 on 31 August 2022 whilst Sunny increased his capital balance by (b) the same amount on 01 December 2022. These capital changes have been recorded. (c) The partners are entitled to the following monthly salaries: Sunny R25 000 Raymond R20 000 (d) Raymond is entitled to a bonus equal to 10% of his annual salary. (e) The remaining profit/shortfall must be shared between Sunny and Raymond in the ratio of the capital balances as at the beginning of the financial year.
Use the information provided below to prepare the Statement of Changes in Equity of Sunray Traders for the year ended 28 February 2023. INFORMATION EXTRACT FROM THE LEDGER OF SUNRAY TRADERS AS AT 28 FEBRUARY 2023 Capital: Sunny Capital: Raymond Current a/c: Sunny (01 March 2022) Current a/c: Raymond (01 March 2022) Drawings: Sunny Drawings: Raymond Debit R 60 000 500 000 700 000 Credit R 600 000 400 000 100 000 The following must be considered: (a) On 28 February 2023 the Statement of Comprehensive Income reflected a net profit of R1 400 000. The partners are entitled to interest at 15% p.a. on their capital balances. Note: Raymond decreased his capital contribution by R200 000 on 31 August 2022 whilst Sunny increased his capital balance by (b) the same amount on 01 December 2022. These capital changes have been recorded. (c) The partners are entitled to the following monthly salaries: Sunny R25 000 Raymond R20 000 (d) Raymond is entitled to a bonus equal to 10% of his annual salary. (e) The remaining profit/shortfall must be shared between Sunny and Raymond in the ratio of the capital balances as at the beginning of the financial year.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter13: Marketable Securities And Derivatives
Section: Chapter Questions
Problem 23P
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Question
Transcribed Image Text:Use the information provided below to prepare the Statement of Changes in Equity of Sunray Traders for the
year ended 28 February 2023.
INFORMATION
EXTRACT FROM THE LEDGER OF SUNRAY TRADERS AS AT 28 FEBRUARY 2023
Capital: Sunny
Capital: Raymond
Current a/c: Sunny (01 March 2022)
Current a/c: Raymond (01 March 2022)
Drawings: Sunny
Drawings: Raymond
Debit
R
60 000
500 000
700 000
Credit
R
600 000
400 000
100 000
The following must be considered:
(a) On 28 February 2023 the Statement of Comprehensive Income reflected a net profit of R1 400 000.
(b) The partners are entitled to interest at 15% p.a. on their capital balances. Note: Raymond decreased
his capital contribution by R200 000 on 31 August 2022 whilst Sunny increased his capital balance by
the same amount on 01 December 2022. These capital changes have been recorded.
(c) The partners are entitled to the following monthly salaries:
Sunny R25 000
Raymond R20 000
(d)
Raymond is entitled to a bonus equal to 10% of his annual salary.
(e) The remaining profit/shortfall must be shared between Sunny and Raymond in the ratio of the capital
balances as at the beginning of the financial year.
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