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The information provided relates to ST Traders


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: 1. Extract from the Trial Balance on 28 February 2020 750 000 500 000 6 750 9 800 (DR) ? 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 ? 820 000 7750 (CR) 1 300 Inventories 28 620 Trade and other Receivables 37 500 32 300 Trade and other payables 1 120 000 Sales ? Profit and loss (net profit for the year)
2. Partners' earnings and drawings: Sam earns a salary of R102 000 per year. Tom earns 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 ac?ount. .
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 w 40 000 Interest on capital 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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