QUESTION 11

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. 1 999 800

B. 1 999 620

C. 2 221 800

D. 1 799 820

QUESTION 12

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. 333 300

B. 333 000

C. 370 300

D. 370 000

QUESTION 13

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. 133 200

C. 153 200

D. 134 900

QUESTION 14

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

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 2700 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 108 500 2020) 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 519 000 adjustments) 2. 2.1 2.2 3 3.1 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. Additional information (year-end adjustments) 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. 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