Question 1 of 15 15 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 Equipment at cost Vehicles at cost Accumulated depreciation Equipment Accumulated depreciation Vehicles Accumulated depreciation Buildings Investments Mortgage Loan from Tsholo Inventory Trade debtors control Allowance for settlement discount granted Allowance for credit losses Petty cash Prepayments Capital Tsholo Capital: Kele Current account: Tsholo (D) (1 March 2020) Current account Kele (D1) (1 March 2020) Trade creditors control Accrued expenses (Advertising) Bank overdraft Profit for the year (before year-end adjustments) 2 430 400 347 200 486 100 104 300 118 100 208 400 1 222 100 1 999 800 333 300 20 900 769 200 8 200 8000 10 900 10 200 310 500 724 500 94 300 110 400 117 300 15 900 158 200 451 300 2. 2.1 Terms of the partnership agreement Interest is calculated at 7% and 8% per annum on the partners opening capital and current account balances respectively Each partner is entitled to a salary of R87 000 per annum 22 22 3 3.1 Each partner is entitled to a salary of R87 000 per annum Additional information (year-end adjustments) Investments comprise of 120 000 shares in MTP Lid bought for a total amount of R228 000 on 1 Apni 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 Lid 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. 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 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 . 3.2 3.4 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? - O A. 2 468 600 B.2 430 400 C. 2 222 000 OD. 2 700 200 Reset Selection . QUESTION 2 Which alternative represents the correct amount for carrying amount of equipment in the statement of financial pos oon of Nandoni as at 28 February 20219 O A. 242 900 B. 269 900 . C. 385 800 . D. 347 200 Reset Selection Question 3 of 15 15 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 20212 . A. 486 100 O B.540 100 O C. 408 800 . D. 368 000 Reset Selection Question 4 of 15 15 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. 1 222 100 B. 1 357 800 C. 994 100 . D. 1 129 800 Reset Selection 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. 20 900 C. 11 800 @D. 10 200 Reset Selection Question 6 of 15 10 Points QUESTION 6 Which alternative represents the correct amount for prepayments in the statement of financial position of Nandoni as at 28 February 20212 A. 10 200 OB. 11 800 OC. 20 900 D. 23 300 Reset Selection
