Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please assist on answering the questions below Use the given information below to answer questions 1-6: Ndiza Traders is a partnership with Ukhozi and Sparrow
Please assist on answering the questions below
Use the given information below to answer questions 1-6: Ndiza Traders is a partnership with Ukhozi and Sparrow as partners. The following information pertains to the business activities of the partnership for the year ended 30 June 2021. 1. 1. Balances as at 30 June 2021: : NDIZA TRADERS BALANCES AS AT 30 JUNE 2021 Capital: Ukhozi Capital: Sparrow Current account: Ukhozi (Cr: 1 July 2020) Current account: Sparrow (Dr: 1 July 2020) Drawings: Ukhozi (30 June 2021) Drawings: Sparrow (30 June 2021) Trade payables control Bank (Dr) Inventory Trade receivables control Allowance for credit losses Vehicle at cost Accumulated depreciation: Vehicles Prepayment: Equipment hire Profit for the year R90 000 R70 000 R2 500 R1 200 R4 590 R7 000 R54 930 R83 140 R22 500 R38 500 R260 R96 000 R11 500 R38 800 R62 500 2. Additional information: 2.1 Partnership agreement: 2.1.1 The partners Ukhozi and Sparrow share profits and losses in the ratio of 3:2 respectively. 2.1.2 Interest is calculated at 12% per annum on the opening balances of the partners' capital and current accounts. 2.1.3 Both partners are entitled to a salary of R15 000 per month. On 30 June 2021, the partners were paid R10 000 each as monthly salaries. This information is yet to be recorded in the books of the partnership. 2.2 Year-end adjustments: 2.2.1 Ukhozi's mother-in law decided to lend R100 000 to the partnership on 30 June 2021 to enable them to buy land for development. The R100 000 will be a long-term loan to the partnership with interest calculated at 8% per annum and will be repayable in equal instalments over 10 years. The first instalment is due on 30 June 2022 Question 28 Which one of the following alternatives represents the correct amount that must be disclosed as trade and other receivables in the statement of financial position of Ndiza Traders as at 30 June 2021? A. R77 300 B.R77 550 C.R38 240 D. R38 250 E. R77050 Question 29 Which one of the following alternatives represents the correct amount that must be disclosed as cash and cash equivalents or bank overdraft in the statement of financial position of Ndiza Traders as at 30 June 2021? A. R 83 140 B. R183 240 C. R56 760 (Bank overdraft) R D. R 83 240 E. R156 760 (Bank overdraft) Question 30 Assuming that the profit available for distribution to partners amounted to R20 000, which one of the following alternatives represents the correct balance in the current account of Sparrow on 30 June 2021? A R75 000 B. R60 000 C. R68 000 D. R68 056 E. R67 000Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started