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The information provided relates to ST Traders

Accounting

The information provided relates to ST Traders. The business is a partnership owned by Sam and Tom Tibs. The financial year ended on 28 February 2020. Information: Extract from the Trial Balance on 28 February 2020 750 000 500 000 6750 9 800 (OR) 820 000 Capital: Sam Capital: Tom Current Account: Sam (01 March 2019) Current Account Tom (01 March 2019) Drawings. Sam Drawings Tom Loan: Drago Bank Bank (cr) Cash Float Inventories Trade and other Receivables Trade and other payables Sales Profit and loss (net profit for the year) 7750 (CR) 1.300 28 620 37 500 32 300 1120 000 ?
dye view A' Read alo 2. Partners' earnings and drawings: Sam earns a salary of R102 000 per year. Tom eams 5% more than Sam. Interest on capital is calculated at 8% pa. Tom's interest amounts to R40 000. Note that Sam increased his capital by R25 000 on 1 December 2019. This was recorded accordingly. Tom is entitled to a production bonus equal to 1,5% of turnover. The remaining profit or loss is shared between Sam and Tom in the ratio 3 2 respectively. The remaining profit earned by Tom was R7 500 after all adjustments were done. Tom also withdrew 60% of his total earnings for this financial year. Sam ended with a credit balance of R32 550 on his current account Required Complete the Current account note (Use below. format and figures provided as well, calculate and fill in the missing figures) NOTE : CURRENT ACCOUNT SAM TOM TOTAL Salaries 102 000 Interest on capital 40 000 Bonus Primary distribution of profits Final distribution of profits 7 500 Net profit as per income statement
Required: Complete the Current account note (Use below format and figures provided as well, calculate and fill in the missing figures) NOTE : CURRENT ACCOUNT SAM TOM TOTAL Salaries 102 000 Interest on capital 40 000 Bonus Primary distribution of profits Final distribution of profits 7 500 Net profit as per income statement Drawings Retained income for the year Balance at the beginning of the year 6 750 Balance at end of the year. 32 550

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