Use the following information to answer questions 06 to 15.

Meikie and John were in partnership and traded as Maputla Traders. They shared profits/losses in the ratio of 5:3 respectively. The following information is presented to you on 28 February 2021, the end of the financial year:

Maputla Traders
Balances as at 28 February 2021:	R
Capital: John (28 February 2020),	360000
Capital: Meikie(28 February 2020)	60000
Current account: John (Dr) (1 March 2020)	33000
Current account: Meikie (Cr) (1 March 2020)	18000
Drawings: John (cash)	78000
Drawings: Meikie(cash)	66000
Office furniture at cost	228000
Vehicles at cost (01 March 2019)	240000
Accumulated depreciation: Office furniture (30 September 2020)	87840
Accumulated depreciation: Vehicles (28 February 2020),	??
Long-term loan (unsecured)	150000
Trade receivables control,	120000
Trade payables control	88800
Bank (overdraft)	11760
Allowance for credit losses	3060
Stationery inventory (01 March 2020)	3900
Sales	555360
Inventory (28 February 2020)	51000
Profit on sale of office furniture	??
Delivery expenses (in respect of sales)	4140
Settlement discount granted,	6744
Purchases	469971.6
Delivery expenses (in respect of inventories)	7800
Sales returns	8400
Purchases returns	3500
Settlement discount received	??
Rent expense	32400
Bank charges	1770
Depreciation (office furniture)	1536
Interest expense (paid on long-term loan)	18000
Salaries and wages	186000
Telephone expenses	4344
Fuel and sundry vehicle expenses	17280
Stationery (purchased)	3048
Marketing fees	6552
Insurance premiums	6500

Additional Information

1. The following amounts have not yet been provided for:

1.1 Depreciation

a) On the vehicles according to the straight-line method. The expected lifespan of each vehicle is estimated to be 5 years. The residual value thereof is estimated at R 000.

A new Toyota bakkie was acquired on the 01 January 2020 for R320 000. There was no vehicle disposed of during the year.

b) On the office furniture at 20% per annum on the diminishing balance method, residual value of R2000,00. Office Furniture with a cost of R25 000 was sold on the 31 September 2020 for R19 000, the furniture was acquired on the 01 April 2019.

1.1.1 The long-term loan was acquired from Campitec Bank on 01 June 2020 at 10.5% interest per annum. The loan is unsecured and is repayable in 10 equal annual instalments from 1 June 2020.

1.2 Credit losses of R7 000 must be written off. The closing balance of the allowance for credit losses account must be increased with R2 700.

1.3 The following are stipulated in the partnership agreement:

1.3.1 Interest on capital must be calculated at 8,5% per annum on the opening balances of the

capital accounts.

1.3.2 The partnership must create separate drawings and current accounts for each partner.

1.3.3 Interest on current accounts must be calculated at 20% per annum on the opening balances of the current accounts.

1.4 Drawings still to be accounted for:

a) John trading inventory, R5 000

b) Meikie stationery inventory, R360

1.5 A total Settlement discount of 1% on Purchases for the year was received. Stationery on hand on 28 February 2021 R600 and Inventory on hand at 28 February 2021 at R22 000,00.

1.6 The insurance premium for March 2021 was paid in advance. The premiums are paid in equal monthly amounts.

1.7 At the end of each financial year the drawings accounts must be closed off against the applicable current accounts.

Which of the following alternative should be recorded in the Statement of profit/loss for the year ended 28 February 2021 relating to Revenue?

A.

R 536 076,00

B.

R 555 360,00

C.

R 540 216,00

D.

R 546 960,00

Question 7

Which of the following alternative should be recorded in the Statement of profit/loss for the year ended 28 February 2021 relating to Purchases?

A.

R 471 471,60

B.

R 461 471,60

C.

R 461 806,88

D.

R 456 771,88

Question 8

Which of the following alternative to be recorded on the face of the Statement of profit/loss for the year ended 28 February 2021 relating to Stationery?

A.

R 6 348,00

B.

R 5 988,00

C.

R 3 900,00

D.

R 3 048,00

Question 9

Assuming purchases for the year amounted to R450 000, 00. Which of the following alternative is to be recorded on the face of the Statement of profit/loss for the year ended 28 February 2021 as Cost of Sales?

A.

R 51 000,00

B.

R 537 606.88

C.

R 529 806.88

D.

R 491 800.00

Question 10

Which of the following amount will be recorded in the financial statements of Maputla Traders for the year ended 28 February 2021 relating to Depreciation for vehicles?

A.

R59 333,33

B.

R 116 000,00

C.

R 48 000,00

D.

R 68 000,00

Question 11

Which of the following amount will be recorded in the financial statements of Maputla Traders for the year ended 28 February 2021 as Carrying amount for vehicles?

A.

R 520 667,67

B.

R 442 000, 00

C.

R 499 166,67

D.

R 170 500,00

Question 12

Which of the following amount will be recorded in the statement of profit/loss of Maputla Traders for the year ended 28 February 2021 as profit/loss on sale of office furniture?

A.

R 408,10 Profit

B.

R 3 583, 33 Loss

C.

R 1 000,00 Loss

D.

R 3 583, 33 Profit

Question 13

Which of the following alternative should be recorded in the Statement or profit/loss of Maputla Traders for the year ended 28 February 2021 relating to insurance premiums?

A.

R 6 000,00

B.

R 6 500,00

C.

R 7 000,00

D.

R 5 500,00

Question 14

Which of the following amount will be recorded in the financial statements of Maputla Traders for the year ended 28 February 2021 relating to Allowance for Credit Losses?

A.

R 7 000,00

B.

R 5 760,00

C.

R 2 7000,00

D.

R 3 060,00

Question 15

Which of the following amount will be included on the Trade payables line item in the Statements of Financial Position of Maputla Traders for the year ended 28 February 2021 relating to Interest on long-term loan is:

A.

R 15 750,00

B.

R 18 000,00

C.

R 11 812,50

D.

R 6 187,50