Sharpville $4$U Furniture, a partnership established on February $1,2023,$ by Carlton and Carlie, specialises in the manufacturing of household and office furniture and supplies to furniture stores and households around Sharpville.

The following information pertains to the business activities as of February $29,2024.$

EXTRACT OF BALANCES AS AT $28$ FEBRUARY $2024$

R

Sales $730,590$

Purchases $474,670$

Settlement discount received $9,620$

Delivery cost on sales $1,750$

Delivery cost on purchases $12,800$

Bank charges $4,470$

Depreciation $19,380$

Office equipment rental expenses $19,320$

Water and electricity $20,150$

Salaries and wages $43,980$

Stationery consumed $1,630$

Interest on loan $17,000$

Equipment at cost $178,250$

Accumulated depreciation: Equipment $18,290$

Land and buildings at cost $517,500$

Inventory $(1$ March $2023)6,900$

Trade receivables control $94,630$

Bank $($Dr$)81,570$

Capital: Carlton $212,400$

Capital: Carlie $120,000$

Drawings: Carlton $42,480$

Drawings: Carlie $48,750$

Long$-$term loan $($Myeni Bank$)450,000$

Trade payables control $34,480$

$1.$ Additional information:

$2\mathrm{.}1$ Partnership agreement:

$2\mathrm{.}1\mathrm{.}1$ Each partner has a monthly salary entitlement of R$14,100.$ An advance payment to one of the partners has been made to one of the partners as salary for March and April $2024.$

$2\mathrm{.}1\mathrm{.}2$ An annual interest rate of $10\%$ is applied to the capital account balances.

$2\mathrm{.}1\mathrm{.}3$ Carlton and Carlie agreed to share profits and losses at a ratio of $3$:$1.$

$2\mathrm{.}2$ Year$-$end adjustments:

$2\mathrm{.}2\mathrm{.}1$ The office equipment rental expenses include R$3150$ for a printing machine which Carlie$$s wife uses at home for personal reasons. Additionally, on $3$ March $2024,$ a bill for February $2024$ totalling R$2800$ was received and has yet to be accounted for.

$2\mathrm{.}2\mathrm{.}2$ The company's land and buildings include the factory and adjacent office in Sharpville, which also acts as collateral for a long$-$term loan from Myeni Bank. This loan, bearing a $10\%$ annual interest rate, was secured on May $1,2023,$ with interest payments due semi$-$annually at the end of August and February.

$2\mathrm{.}2\mathrm{.}3$ During the year, Carlton was allotted R$4,800$ for a travel allowance to attend a black industrialist summit in Durban. From this allowance, R$1200$ was spent on Uber for travel to $($and from$)$ the airport and summit, and R$3,000$ was spent on flight tickets and accommodation.

$2\mathrm{.}2\mathrm{.}4$ The inventory's value was calculated to be R$18,100$ as of February $29,2024.$

$2\mathrm{.}2\mathrm{.}5$ As an initial capital contribution, one partner introduced inventory valued at R$6,000,$ which was the opening inventory on March $1,2023.$

Which one of the following alternatives represents the correct amount that must be disclosed as cost of sales in the statement of profit or loss and other comprehensive income of Sharpville $4$U Furniture for the year ended $29$ February $2024?$

a$.$

R $453,850$

b$.$

R $434,610$

c$.$

R $453,800$

d$.$

R $447,410$

e$.$

R $466,650$

Question $23$

Not yet answered

Marked out of $2\mathrm{.}00$