QUESTION TWO I Singh and U Song are in partnership sharing profits and losses in the ratio of 2:3. The following relates to their business Best Deals whereby they sell furniture to the public. They are not registered as VAT vendors. SAMSUNG The list of balances at 28 February 2021 before relevant additional information was taken into account is as follows: Furniture and equipment at carrying amount Inventory Debtors control Allowance for credit losses Bank Capital: Singh Capital; Song Current account - Singh (1 March 2020) - Debit Current account - Song (1 March 2020) - Credit Drawings - Singh Drawings - Song Long term borrowing Creditors control Profit and loss account - profit for the year Additional information: 1 (25) 2 R 323 090 315 450 351-400 25 850 33 900 200 000 300 000 22 000 65 000 45 540 43 980 120 000 146 270 542 400 On 1 September 2020, A Song contributed a further R50 000 as capital into the partnership. The transaction has been recorded correctly. The partnership agreement stipulates the following: