The net profit according to the Profit and loss account amounted to R680 000 on 28 February 2013.
(b) The partnership agreement makes provision for the following:
Interest on capital must be provided at 15% per annum on the balances In the capital accounts. Note: Pac increased his capital by R120 000 on 01 September 2012. On the same date, Mann decreased his capital by R60 000. The capital changes have been recorded.
The partners are entitled to the following monthly salaries:
Pac R7 000
Mann R6 000
Note: The partners’ salaries were increased by 10% with effect from 01 December 2012. Pac is entitled to a bonus of 10% of the net profit before any appropriations are made.
Pac and Mann share the remaining profits or losses equally.
Attachments:
BCOM SCM Fin ….pdf