Part 1 of 6 - Statement of financial position

Question 1 of 15

1.5 Points

The information below relates to questions 1 15.

Sisters Tsholo and Kele won a lucrative mining services contract in Stoffberg (Mpumalanga) and decided to start a business, trading as Nandoni. The entity provides safety and maintenance services to a coal mine in the area. The following information pertains to the business activities of the partnership for the year ended 28 February 2021:

1. Extracted list of balances as at 28 February 2021:

	R
Land and buildings at cost	2 700 200
Equipment at cost	385 800
Vehicles at cost	540 100
Accumulated depreciation: Equipment	115 900
Accumulated depreciation: Vehicles	131 300
Accumulated depreciation: Buildings	231 600
Investments	1 357 800
Mortgage	2 221 800
Loan from Tsholo	370 300
Inventory	23 300
Trade debtors control	884 600
Allowance for settlement discount granted	9 500
Allowance for credit losses	9 200
Petty cash	12 600
Prepayments	11 800
Capital: Tsholo	357 100
Capital: Kele	833 200
Current account: Tsholo (Dr) (1 March 2020)	108 500
Current account: Kele (Dr) (1 March 2020)	127 000
Trade creditors control	134 900
Accrued expenses (Advertising)	18 300
Bank overdraft	182 000
Profit for the year (before year-end adjustments)	519 000

2. Terms of the partnership agreement

2.1 Interest is calculated at 7% and 8% per annum on the partners opening capital and current account balances respectively.

2.2 Each partner is entitled to a salary of R87 000 per annum.

3 Additional information (year-end adjustments)

3.1 Investments comprise of

• 120 000 shares in MTP Ltd bought for a total amount of R228 000 on 1 April 2020. These shares were trading at 2.5 per share on 28 February 2021. A dividend of 40 cents per share was declared by MTP Ltd on 28 February 2021 and the payment is expected to be received on 31 March 2021.
• An investment in Khabo (Pty) Ltd made on 5 May 2019.

3.2 Tsholo granted an unsecured loan on 1 January 2021 to the partnership. According to the terms of the loan, interest is calculated at a rate of 16% per annum and is paid on 31 December of every year. The total capital amount of the loan will be repaid in full on 31 December 2024. Interest for the current financial year must still be provided.

3.4 The mortgage loan from Tototo Bank was acquired on 1 July 2020 and bears interest at 6% per annum. The interest on this loan is payable on 30 June every year. The loan is secured by a first mortgage over land and buildings and is repayable in ten equal annual instalments, starting on 30 June 2021.

QUESTION 1

Which alternative represents the correct amount for carrying amount of land and buildings in the statement of financial position of Nandoni as at 28 February 2021?

• A.

  2 700 200

• B.

  2 468 600

• C.

  2 430 400

• D.

  2 222 000

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Question 2 of 15

1.5 Points

QUESTION 2

Which alternative represents the correct amount for carrying amount of equipment in the statement of financial position of Nandoni as at 28 February 2021?

• A.

  347 200

• B.

  242 900

• C.

  385 800

• D.

  269 900

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Question 3 of 15

1.5 Points

QUESTION 3

Which alternative represents the correct amount for carrying amount of vehicles in the statement of financial position of Nandoni as at 28 February 2021?

• A.

  368 000

• B.

  540 100

• C.

  486 100

• D.

  408 800

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Question 4 of 15

1.5 Points

QUESTION 4

Which alternative represents the correct amount for investments under non-current assets in the statement of financial position of Nandoni as at 28 February 2021?

• A.

  1 129 800

• B.

  994 100

• C.

  1 357 800

• D.

  1 222 100

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Question 5 of 15

1.0 Points

QUESTION 5

Which alternative represents the correct amount for inventories in the statement of financial position of Nandoni as at 28 February 2021?

• A.

  23 300

• B.

  11 800

• C.

  20 900

• D.

  10 200

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Question 6 of 15

1.0 Points

QUESTION 6

Which alternative represents the correct amount for prepayments in the statement of financial position of Nandoni as at 28 February 2021?

• A.

  11 800

• B.

  23 300

• C.

  10 200

• D.

  20 900

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Question 7 of 15

2.5 Points

QUESTION 7

Which alternative represents the correct amount for trade and other receivables in the notes to the financial statements of Nandoni as at 28 February 2021?

• A.

  865 900

• B.

  913 900

• C.

  753 000

• D.

  801 000

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Question 8 of 15

1.5 Points

QUESTION 8

Which alternative represents the correct amount for investments under current assets in the statement of financial position of Nandoni as at 28 February 2021?

• A.

  300 000

• B.

  228 000

• C.

  310 000

• D.

  288 000

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Question 9 of 15

1.0 Points

QUESTION 9

Which alternative represents the correct amount for cash and cash equivalents in the statement of financial position of Nandoni as at 28 February 2021?

• A.

  158 200

• B.

  10 900

• C.

  182 000

• D.

  12 600

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Question 10 of 15

1.5 Points

QUESTION 10

Which alternative represents the correct amount for partners capital in the statement of financial position of Nandoni as at 28 February 2021?

• A.

  1 035 000

• B.

  724 500

• C.

  1 190 300

• D.

  833 200

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Question 11 of 15

5.0 Points

QUESTION 11

Which alternative represents the correct amount for partners current account in the statement of financial position of Nandoni as at 28 February 2021?

• A.

  114 520

• B.

  232 753

• C.

  205 720

• D.

  141 553

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Question 12 of 15

1.5 Points

QUESTION 12

Which alternative represents the correct amount for long-term borrowings under non-current liabilities in the statement of financial position of Nandoni as at 28 February 2021?

• A.

  1 799 820

• B.

  1 999 620

• C.

  2 221 800

• D.

  1 999 800

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Question 13 of 15

1.0 Points

QUESTION 13

Which alternative represents the correct amount for loan from partners under current liabilities in the in the statement of financial position of Nandoni as at 28 February 2021?

• A.

  333 000

• B.

  370 300

• C.

  333 300

• D.

  370 000

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Question 14 of 15

1.5 Points

QUESTION 14

Which alternative represents the correct amount for trade and other payables in the financial liabilities note to the financial statements of Nandoni for the year ended 28 February 2021?

• A.

  117 300

• B.

  153 200

• C.

  133 200

• D.

  134 900

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Question 15 of 15

1.5 Points

QUESTION 15

Which alternative represents the correct amount for long-term borrowings under current liabilities in the in the statement of financial position of Nandoni as at 28 February 2021?

• A.

  222 180

• B.

  199 980

• C.

  185 000

• D.

  0

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