Use the following format:Statement of changes in equityCapital accounts:Balance atBalance atCurrent accounts:AppropriationBalance atAppropriations:------Balance at The information given below was extracted from the accounting records of Total Limited,a partnership business with Glen and Murry as partners.Information:Extract from the ledger of Total Limited on 30 June 2021RCapital : Glen400 000Capital: Murry300 000Current a/c: Glen (01 July 2020)45 000CRCurrent a/c: Murry (01 July 2020)42 000DRDrawings: Glen95 000Drawings: Murry110 000The following must be taken into account:1.On 30 June 2021 the Profit and Loss account reflected a net profit of R940 000.2.Partners are entitled to interest at 14% p.a. on their capital balances.Note: Glen decreased his capital contribution by R90 000 on 01 July 2020.This capital decrease has been recorded.3.Partners are entitled to the following monthly salaries:Glen R13 000 for the first ten months of the financial year and R15 000for the next two months.• Murry R10 000 per month throughout the year.4.Partner Murry is entitled to a bonus equal to 10% of the net profit beforeany of the above appropriations have been taken into account.5.The remaining profit/shortfall must be shared equally between Glen and Murry.Required:Prepare the Statement of Changes in Equity for the year ended 30 June 2021.

Capital of Glen as on 30th June 2021 is = 400000 Add: Drawing made out of capital = 90000…

Answered: e the following forma tement of changes…

Business

Accounting

e the following forma tement of changes in Capital accounts:

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter10: Partnerships: Formation, Operation, And Basis

Section: Chapter Questions

Problem 2BCRQ

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Use the following format:
Statement of changes in equity
Capital accounts:
Balance at
Balance at
Current accounts:
Appropriation
Balance at
Appropriations:
------
Balance at

The information given below was extracted from the accounting records of Total Limited,
a partnership business with Glen and Murry as partners.
Information:
Extract from the ledger of Total Limited on 30 June 2021
R
Capital : Glen
400 000
Capital: Murry
300 000
Current a/c: Glen (01 July 2020)
45 000
CR
Current a/c: Murry (01 July 2020)
42 000
DR
Drawings: Glen
95 000
Drawings: Murry
110 000
The following must be taken into account:
1.
On 30 June 2021 the Profit and Loss account reflected a net profit of R940 000.
2.
Partners are entitled to interest at 14% p.a. on their capital balances.
Note: Glen decreased his capital contribution by R90 000 on 01 July 2020.
This capital decrease has been recorded.
3.
Partners are entitled to the following monthly salaries:
Glen R13 000 for the first ten months of the financial year and R15 000
for the next two months.
• Murry R10 000 per month throughout the year.
4.
Partner Murry is entitled to a bonus equal to 10% of the net profit before
any of the above appropriations have been taken into account.
5.
The remaining profit/shortfall must be shared equally between Glen and Murry.
Required:
Prepare the Statement of Changes in Equity for the year ended 30 June 2021.

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