The partnership agreement stipulates the following:

1. Interest on capital must be calculated at 7% per annum on the opening balances of the Capital Accounts.
2. The partnership must create separate drawings and current accounts for each partnership.
3. Interest on current accounts must be calculated at 17.5% per annum on the opening balances of the current accounts.
4. At the end of the financial year, the Drawings accounts must be closed off against the applicable current accounts.

Additional Information

The following information has not yet been accounted for:

1.A settlement discount of 3% on total Purchases for the year was received. Inventory on hand at 31 August 2023 amounted to R16 000.

2.The mortgage was obtained from The Baking Bank on 01 November 2022 and bears interest at a rate of 15% per annum. Interest for the current year must still be provided for.

3.The closing balance of the allowance for credit losses account must be increased with R3 800.

4.Depreciation is accounted for as follows:

a. Vehicles: Straight line method, no residual value. The expected lifespan of each vehicle is estimated to be 15 years. A new Ford bakkie was purchased on the 30 November 2022 for R680000. There were no disposals during the year.

b.Office furniture: 15% per annum on the diminishing balance method, no residual value. Office Furniture with a cost of R65 000 was sold on the 31 December 2022 for R50 000, the furniture was acquired on the 1 October 2021

5.Drawings:

a.Greg - Inventory R5 000

b.Sheniz - Inventory R360

6.The monthly salary expense for existing staff amounts to R48 000 per month. Sugar Rush brought in two new employees on January 1, 2023, both receiving a monthly wage of R18 000 each.

7.A new insurance contract was entered into by Sugar Rush on 1 March 2023. The monthly insurance premiums are R750 with a total annual payment being made on 1stof March every year. The current years premium was not recorded in the books of Sugar Rush.

QUESTION 1

Which one of the following alternatives represents the correctRevenueamount recorded in the statement of profit / loss and other comprehensive income of Sugar Rush for the year ended 31 August 2023?

Q2Which one of the following alternatives represents the correctPurchasesamount of Sugar Rush for the year ended 31 August 2023?

Q3

Which one of the following alternatives represents the correctAllowance for Credit Losses balanceamount to be recorded in the financial statements of Sugar Rush for the year ended 31 August 2023?

Q4Assuming a Purchases amount of R360000, which of the following alternatives represent the correctCost of Salesamount recorded in the statement of profit / loss and other comprehensive income of Sugar Rush for the year ended 31 August 2023?

Q5 Which of the following alternatives represent the correctinterest on the mortgageamount to be recorded in the statement of profit / loss and other comprehensive income of Sugar Rush for the year ended 31 August 2023?

Q6 Which of the following alternatives represent the correctprofit/loss on sale of office furnitureto be recorded in statement of profit / loss and other comprehensive income of Sugar Rush for the year ended 31 August 2023?

Q7 Which one of the following alternatives represents the correctDepreciation of Vehiclesamount recorded in the statement of profit / loss and other comprehensive income of Sugar Rush for the year ended 31 August 2023?

Q8Which one of the following alternatives represents the correctCarrying Value of Vehiclesamount recorded in the statement of financial position of Sugar Rush for the year ended 31 August 2023?

Q9Which one of the following alternatives represents the correctInterest on Capital and Current Accounts of Gregfor the year ended 31 August 2023?

Q10Which one of the following alternatives represents the correctInterest on Capital and Current Accounts of Shenizfor the year ended 31 August 2023?

Q11Assuming Sugar Rush made a profit of R220000, which of the following alternatives represents Shenizs share of the profits available for distribution for the year ended 31 August 2023?

Q12Assuming Sugar Rush made a loss of R13 500, which of the following alternatives represents Gregs share of the loss for the year ended 31 August 2023?

Q13Which of the following alternatives represents the correct amount forsalary expenseto be recorded in the statement of profit / loss and other comprehensive income of Sugar Rush for the year ended 31 August 2023?

Q14Which of the following alternatives represents the correct amount forinsurance expenseto be recorded in the statement of profit / loss and other comprehensive income of Sugar Rush for the year ended 31 August 2023?

Q15Which of the following alternatives represents the correct amount forprepaid insuranceto be recorded in the statement of financial position of Sugar Rush for the year ended 31 August 2023?

No trial Balance provided.

Greg and Sheniz are in a partnership trading as Sugar Rush, a new, up-and-coming pastry shop. They share profits and losses in the ratio of 5:3 respectively. The following information was obtained for the financial year ending 31 August 2023: The partnership agreement stipulates the following: 1. Interest on capital must be calculated at 7% per annum on the opening balances of the Capital Accounts. 2. The partnership must create separate drawings and current accounts for each partnership. 3. Interest on current accounts must be calculated at 17.5% per annum on the opening balances of the current accounts