Meikie and John were in partnership and traded as Maputla Traders. They shared profits/losses in the ratio of 5:3 respectively. The following information is presented to you on 28 February 2021, the end of the financial year:

Maputla Traders

Balances as at 28 February 2021: R

Capital: John (28 February 2020), 360000

Capital: Meikie(28 February 2020) 60000

Current account: John (Dr) (1 March 2020) 33000

Current account: Meikie (Cr) (1 March 2020) 18000

Drawings: John (cash) 78000

Drawings: Meikie(cash) 66000

Office furniture at cost 228000

Vehicles at cost (01 March 2019) 240000

Accumulated depreciation: Office furniture (30 September 2020) 87840

Accumulated depreciation: Vehicles (28 February 2020), ??

Long-term loan (unsecured) 150000

Trade receivables control, 120000

Trade payables control 88800

Bank (overdraft) 11760

Allowance for credit losses 3060

Stationery inventory (01 March 2020) 3900

Sales 555360

Inventory (28 February 2020) 51000

Profit on sale of office furniture ??

Delivery expenses (in respect of sales) 4140

Settlement discount granted, 6744

Purchases 469971.6

Delivery expenses (in respect of inventories) 7800

Sales returns 8400

Purchases returns 3500

Settlement discount received ??

Rent expense 32400

Bank charges 1770

Depreciation (office furniture) 1536

Interest expense (paid on long-term loan) 18000

Salaries and wages 186000

Telephone expenses 4344

Fuel and sundry vehicle expenses 17280

Stationery (purchased) 3048

Marketing fees 6552

Insurance premiums 6500

Additional Information

1. The following amounts have not yet been provided for:

1.1 Depreciation

a) On the vehicles according to the straight-line method. The expected lifespan of each vehicle is estimated to be 5 years. The residual value thereof is estimated at R 000.

A new Toyota bakkie was acquired on the 01 January 2020 for R320 000. There was no vehicle disposed of during the year.

b) On the office furniture at 20% per annum on the diminishing balance method, residual value of R2000,00. Office Furniture with a cost of R25 000 was sold on the 31 September 2020 for R19 000, the furniture was acquired on the 01 April 2019.

1.1.1 The long-term loan was acquired from Campitec Bank on 01 June 2020 at 10.5% interest per annum. The loan is unsecured and is repayable in 10 equal annual instalments from 1 June 2020.

1.2 Credit losses of R7 000 must be written off. The closing balance of the allowance for credit losses account must be increased with R2 700.

1.3 The following are stipulated in the partnership agreement:

1.3.1 Interest on capital must be calculated at 8,5% per annum on the opening balances of the capital accounts.

1.3.2 The partnership must create separate drawings and current accounts for each partner.

1.3.3 Interest on current accounts must be calculated at 20% per annum on the opening balances of the current accounts.

1.4 Drawings still to be accounted for:

a) John trading inventory, R5 000

b) Meikie stationery inventory, R360

1.5 A total Settlement discount of 1% on Purchases for the year was received. Stationery on hand on 28 February 2021 R600 and Inventory on hand at 28 February 2021 at R22 000,00.

1.6 The insurance premium for March 2021 was paid in advance. The premiums are paid in equal monthly amounts.

1.7 At the end of each financial year the drawings accounts must be closed off against the applicable current accounts.

Question 2.1

Which of the following alternative should be recorded in the Statement of profit/loss for the year ended 28 February 2021 relating to Revenue?

R 540 216,00

R 555 360,00

R 546 960,00

R 536 076,00

Question 2.2

Which of the following alternative should be recorded in the Statement of profit/loss for the year ended 28 February 2021 relating to Purchases?

R 461 806,88

R 456 771,88

R 471 471,60

R 461 471,60

Question 2.3

Which of the following alternative to be recorded on the face of the Statement of profit/loss for the year ended 28 February 2021 relating to Stationery?

R 6 348,00

R 3 900,00

R 3 048,00

R 5 988,00

Question 2.4

Assuming purchases for the year amounted to R450 000, 00. Which of the following alternative is to be recorded on the face of the Statement of profit/loss for the year ended 28 February 2021 as Cost of Sales?

R 51 000,00

R 491 800.00

R 529 806.88

R 537 606.88

Question 2.5

Which of the following amount will be recorded in the financial statements of Maputla Traders for the year ended 28 February 2021 relating to Depreciation for vehicles?

R 68 000,00

R 48 000,00

R59 333,33

R 116 000,00

Question 2.6

Which of the following amount will be recorded in the financial statements of Maputla Traders for the year ended 28 February 2021 as Carrying amount for vehicles?

R 499 166,67

R 520 667,67

R 442 000, 00

R 170 500,00

Question 2.8

Which of the following amount will be recorded in the statement of profit/loss of Maputla Traders for the year ended 28 February 2021 as profit/loss on sale of office furniture?

R 1 000,00 Loss

R 3 583, 33 Profit

R 408,10 Profit

R 3 583, 33 Loss

Question 2.7 Which of the following alternatives should be recorded in the Statement or profit/loss of Maputla Traders for the year ended 28 February 2021 relating to insurance premiums?

R 6 500,00

R 7 000,00

R 5 500,00

R 6 000,00

Question 2.9 Which of the following amounts will be recorded in the financial statements of Maputla Traders for the year ended 28 February 2021 relating to Allowance for Credit Losses?

1. R 2 7000,00

2.R 3 060,00

3. R 7 000,00

4. R 5 760,00

Question 2.10 Which of the following amount will be included on the Trade payables line item in the Statements of Financial Position of Maputla Traders for the year ended 28 February 2021 relating to Interest on long-term loan is:

R 15 750,00

R 6 187,50

R 11 812,50

R 18 000,00

please assist to answer this questions

Question 7 Not yet answere Marked out of 2 Which of the following alternative will be recorded the statement of profit/loss of Maputla Traders fo the year ended 28 February 2021 as profit/loss on sale of office furniture? Round your answer to the nearest Rand. A. R 965,00 Loss B. R 965, 00 Profit C. R 1 000,00 Profit D. R 1 000,00 Loss Question 2.1 Which of the following alternative should be recorded in the Statement of profit/loss for the year ended 28 February 2021 relating to Revenue? 1. R 540 216,00 2. R 555 360,00 3. R 546 960,00 4. R 536 076,00 Question 2.2 Which of the following alternative should be recorded in the Statement of profit/loss for the year ended 28 February 2021 relating to Purchases? 1. R 461 806,88 2. R 456 771,88 3. R 471 471,60 4. R 461 471,60 Question 2.3 Which of the following alternative to be recorded on the face of the Statement of profit/loss for the year ended 28 February 2021 relating to Stationery? 1. R 6 348,00