Exam (elaborations)
MANCOSA FIN REP & ANALYSIS UNIT 3 ACTIVITIES
- Institution
- Management College Of Southern Africa (MANCOSA)
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Page 1 of 2FINANCIAL REPORTING AND ANALYSIS
ACTIVITIES: UNIT 3
A02/16RS
QUESTION 1
REQUIRED
Prepare the Statement of Changes in Equity for the year ended 28 February 2023.
INFORMATION
The information given below was extracted from the accounting records of Tomango Traders, a partnership
business with Tom and Ango as partners.
Balances in the ledger on 28 February 2023
Debit Credit
R R
Capital: Tom 400 000
Capital: Ango 250 000
Current a/c: Tom (01 March 2022) 10 000
Current a/c: Ango (01 March 2022) 15 000
Drawings: Tom 200 000
Drawings: Ango 180 000
The following must be considered:
(a) The net profit according to the Statement of Comprehensive Income amounted to
R472 000 for the year ended 28 February 2023.
(b) The partnership agreement makes provision for the following:
■ Interest on capital must be provided for at 18% per annum on the balances in the capital
accounts.
Note: Ango, with the approval of Tom, increased his capital contribution on 01 September 2022
by providing equipment worth R50 000 for use in the office. This has been recorded.
■ Partners are entitled to the following monthly salaries:
Tom R10 000
Ango R12 000
■ Tom and Ango share the remaining profits or losses in the ratio 3:2 respectively.
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