URRICULTURE WINDBLADE TRADERS LIST OF BALANCES AS AT 28 FEBRUARY 2022 Capital: A Wind Capital: B Blade : Land and buildings at cost Equipment at cost Accumulated depreciation: Equipment Bank (Dr) Trade receivables control Inventory (1 March 2021) Long-term loan (ACCA Bank) Trade payables control Sales Purchases Drawings: A Wind Drawings: B Blade Settlement discount received Delivery cost on sales Bank charges Depreciation Telephone expenses Water and electricity Salaries and wages Stationery consumed Interest on loan R180 000 R96 000 R450 000 R155 000 R15 500 R69 125 R75 700 R6 100 R360 000 R29 975 R635 290 R402 620 R36 000 R39 000 R8 360 R1 520 R3 780 R15 500 R18 600 R17 520 R35 180 R1 380 R14 400 1. Additional information 2.1 Partnership agreement: 2.1.1 The partners share profit and losses in the ratio of 2:1 respectively. : 2.1.2 Interest at 10% per annum is to be allowed on the balances of the capital accounts. 2.1.3 Each partner is entitled to a salary of R3 100 per month. One of the partners is overseas at the moment and he has already taken his salary for March 2022. This transaction has been recorded. 2.2 Year-end adjustments: 2.2.1 On 1 March 2021 on of the partners contributed R6 000 worth of inventory as part of his capital contribution 2.2.2 At 28 February 2022 the value of inventory on hand amounted to R12 500 2.2.3 The land and buildings consist of an office stand 184 in Centurion Business Park and serves as security for the long-term loan from ACCA Bank. The loan was obtained on 30 April 2021 at 11% interest per annum. The interest is payable half yearly at the end of August and February 2.2.4 The telephone expense amount includes R1 200 which is private telephone account of A Wind. An account for February 2022 of R1 740 was received late and must still be recorded. 2.2.5 During the year B Blade received R5 000 as a travel allowance to attend a training in Namibia. He used R800 to pay for a Covid-19 test which was required to enter Nambia and R4 000 on meals whilst he was on training 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 Windblade Traders for the year ended 28 February 2022? A. R387 860 B. R404 480 C.R396 120 D. R400 260 E. R387 760