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 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. 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. 2.2 3 3.1 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 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. 1 799 820 . B. 1 999 620 C. 1 999 800 D. 2 221 800 Reset Selection
