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 Extracted list of balances as at 28 February 2021 R Land and buildings at cost 2 430 400 Equipment at cost 347 200 Vehicles at cost 486 100 Accumulated depreciation Equipment 104 300 Accumulated depreciation Vehicles 118 100 Accumulated depreciation Buildings 208 400 Investments 1 222 100 Mortgage 1 999 800 Loan from Tsholo 333 300 Inventory 20 900 Trade debtors control 769 200 Allowance for settlement discount granted 8 200 Allowance for credit losses 8 000 Petty cash 10 900 Prepayments 10 200 Capital Tsholo 310 500 Capital Kele 724 500 Current account Tsholo (Dr) (1 March 2020) 94 300 Current account Kele (Dr) (1 March 2020) 110 400 Trade creditors control 117 300 Accrued expenses (Advertising) 15 900 Bank overdraft 158 200 Profit for the year (before year end adjustments) 451 300 2 Terms of the partnership agreement 2 1 Interest is calculated at 7 and 8 per annum on the partners opening capital and current account balances respectively 2 2 Each partner is entitled to a salary of R87 000 per annum 3 Additional information (year end adjustments) 3 1 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 3 2 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 3 4 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 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 A 2 430 400 B 2 222 000 C 2 468 600 D 2 700 200 Reset Selection Question 2 of 15 1 5 Points QUESTION 2 Which alternative represents the correct amount for carrying amount of equipment in the statement of financial position of Nandoni as at 28 February 2021 A 269 900 B 385 800 C 347 200 D 242 900 Reset Selection Question 3 of 15 1 5 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 2021 A 486 100 B 540 100 C 368 000 D 408 800 Reset Selection Question 4 of 15 1 5 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 1 129 800 B 1 357 800 C 994 100 D 1 222 100 Reset Selection Question 5 of 15 1 0 Points QUESTION 5 Which alternative represents the correct amount for inventories in the statement of financial position of Nandoni as at 28 February 2021 A 11 800 B 10 200 C 20 900 D 23 300 Reset Selection Question 6 of 15 1 0 Points QUESTION 6 Which alternative represents the correct amount for prepayments in the statement of financial position of Nandoni as at 28 February 2021 A 23 300 B 11 800 C 20 900 D 10 200 Reset Selection Question 7 of 15 2 5 Points QUESTION 7 Which alternative represents the correct amount for trade and other receivables in the notes to the financial statements of Nandoni as at 28 February 2021 A 865 900 B 801 000 C 753 000 D 913 900 Reset Selection Question 8 of 15 1 5 Points QUESTION 8 Which alternative represents the correct amount for investments under current assets in the statement of financial position of Nandoni as at 28 February 2021 A 228 000 B 288 000 C 300 000 D 310 000 Reset Selection Question 9 of 15 1 0 Points QUESTION 9 Which alternative represents the correct amount for cash and cash equivalents in the statement of financial position of Nandoni as at 28 February 2021 A 158 200 B 10 900 C 182 000 D 12 600 Reset Selection Question 10 of 15 1 5 Points QUESTION 10 Which alternative represents the correct amount for partners capital in the statement of financial position of Nandoni as at 28 February 2021 A 833 200 B 724 500 C 1 035 000 D 1 190 300 Reset Selection Question 11 of 15 5 0 Points QUESTION 11 Which alternative represents the correct amount for partners current account in the statement of financial position of Nandoni as at 28 February 2021 A 141 553 B 114 520 C 232 753 D 205 720 Reset Selection Question 12 of 15 1 5 Points QUESTION 12 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 Reset Selection Question 13 of 15 1 0 Points QUESTION 13 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 333 000 B 370 000 C 370 300 D 333 300 Reset Selection Question 14 of 15 1 5 Points QUESTION 14 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 133 200 B 117 300 C 153 200 D 134 900 Reset Selection Question 15 of 15 1 5 Points QUESTION 15 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 199 980 B 0 C 222 180 D 185 000 Reset Selection

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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

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:

Extracted list of balances as at 28 February 2021:

	R
Land and buildings at cost	2 430 400
Equipment at cost	347 200
Vehicles at cost	486 100
Accumulated depreciation: Equipment	104 300
Accumulated depreciation: Vehicles	118 100
Accumulated depreciation: Buildings	208 400
Investments	1 222 100
Mortgage	1 999 800
Loan from Tsholo	333 300
Inventory	20 900
Trade debtors control	769 200
Allowance for settlement discount granted	8 200
Allowance for credit losses	8 000
Petty cash	10 900
Prepayments	10 200
Capital: Tsholo	310 500
Capital: Kele	724 500
Current account: Tsholo (Dr) (1 March 2020)	94 300
Current account: Kele (Dr) (1 March 2020)	110 400
Trade creditors control	117 300
Accrued expenses (Advertising)	15 900
Bank overdraft	158 200
Profit for the year (before year-end adjustments)	451 300

2. Terms of the partnership agreement

2.1 Interest is calculated at 7% and 8% per annum on the partners opening capital and current account balances respectively.

2.2 Each partner is entitled to a salary of R87 000 per annum.

3 Additional information (year-end adjustments)

3.1 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.

3.2 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.

3.4 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.

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?

A.
2 430 400
B.
2 222 000
C.
2 468 600
D.
2 700 200

Reset Selection

Question 2 of 15

1.5 Points

QUESTION 2

Which alternative represents the correct amount for carrying amount of equipment in the statement of financial position of Nandoni as at 28 February 2021?

A.
269 900
B.
385 800
C.
347 200
D.
242 900

Reset Selection

Question 3 of 15

1.5 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 2021?

A.
486 100
B.
540 100
C.
368 000
D.
408 800

Reset Selection

Question 4 of 15

1.5 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.
1 129 800
B.
1 357 800
C.
994 100
D.
1 222 100

Reset Selection

Question 5 of 15

1.0 Points

QUESTION 5

Which alternative represents the correct amount for inventories in the statement of financial position of Nandoni as at 28 February 2021?

A.
11 800
B.
10 200
C.
20 900
D.
23 300

Reset Selection

Question 6 of 15

1.0 Points

QUESTION 6

Which alternative represents the correct amount for prepayments in the statement of financial position of Nandoni as at 28 February 2021?

A.
23 300
B.
11 800
C.
20 900
D.
10 200

Reset Selection

Question 7 of 15

2.5 Points

QUESTION 7

Which alternative represents the correct amount for trade and other receivables in the notes to the financial statements of Nandoni as at 28 February 2021?

A.
865 900
B.
801 000
C.
753 000
D.
913 900

Reset Selection

Question 8 of 15

1.5 Points

QUESTION 8

Which alternative represents the correct amount for investments under current assets in the statement of financial position of Nandoni as at 28 February 2021?

A.
228 000
B.
288 000
C.
300 000
D.
310 000

Reset Selection

Question 9 of 15

1.0 Points

QUESTION 9

Which alternative represents the correct amount for cash and cash equivalents in the statement of financial position of Nandoni as at 28 February 2021?

A.
158 200
B.
10 900
C.
182 000
D.
12 600

Reset Selection

Question 10 of 15

1.5 Points

QUESTION 10

Which alternative represents the correct amount for partners capital in the statement of financial position of Nandoni as at 28 February 2021?

A.
833 200
B.
724 500
C.
1 035 000
D.
1 190 300

Reset Selection

Question 11 of 15

5.0 Points

QUESTION 11

Which alternative represents the correct amount for partners current account in the statement of financial position of Nandoni as at 28 February 2021?

A.
141 553
B.
114 520
C.
232 753
D.
205 720

Reset Selection

Question 12 of 15

1.5 Points

QUESTION 12

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

Reset Selection

Question 13 of 15

1.0 Points

QUESTION 13

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.
333 000
B.
370 000
C.
370 300
D.
333 300

Reset Selection

Question 14 of 15

1.5 Points

QUESTION 14

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.
133 200
B.
117 300
C.
153 200
D.
134 900

Reset Selection

Question 15 of 15

1.5 Points

QUESTION 15

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?