Question
Use the given information below to answer questions 1 6: Ndiza Traders is a partnership with Ukhozi and Sparrow as partners. The following information pertains
Use the given information below to answer questions 1 6:
Ndiza Traders is a partnership with Ukhozi and Sparrow as partners. The following information pertains to the business activities of the partnership for the year ended 30 June 2021.
1. Balances as at 30 June 2021:
NDIZA TRADERS | |
BALANCES AS AT 30 JUNE 2021 | |
Capital: Ukhozi | R90 000 |
Capital: Sparrow | R70 000 |
Current account: Ukhozi (Cr: 1 July 2020) | R2 500 |
Current account: Sparrow (Dr: 1 July 2020) | R1 200 |
Drawings: Ukhozi (30 June 2021) | R4 590 |
Drawings: Sparrow (30 June 2021) | R7 000 |
Trade payables control | R54 930 |
Bank (Dr) | R83 140 |
Inventory | R22 500 |
Trade receivables control | R38 500 |
Allowance for credit losses | R260 |
Vehicle at cost | R96 000 |
Accumulated depreciation: Vehicles | R11 500 |
Prepayment: Equipment hire | R38 800 |
Profit for the year | R62 500 |
2. Additional information:
2.1 Partnership agreement:
2.1.1 The partners Ukhozi and Sparrow share profits and losses in the ratio of 3:2 respectively.
2.1.2 Interest is calculated at 12% per annum on the opening balances of the partners capital and current accounts.
2.1.3 Both partners are entitled to a salary of R15 000 per month. On 30 June 2021, the partners were paid R10 000 each as monthly salaries. This information is yet to be recorded in the books of the partnership.
2.2 Year-end adjustments:
2.2.1 Ukhozis mother-in law decided to lend R100 000 to the partnership on 30 June 2021 to enable them to buy land for development. The R100 000 will be a long-term loan to the partnership, with interest calculated at 8% per annum and will be repayable in equal instalments over 10 years. The first instalment is due on 30 June 2022.
Q. 25
Which one of the following alternatives represents the correct amount that must be disclosed as total equity in the statement of changes in equity of Ndiza Traders for the year ended 30 June 2020?
a.R160 000
b.R149 760
c.R161 250
d.R163 750
e.R161 300
Q.26
Which one of the following alternatives represents the correct amount that must be disclosed as drawings in the statement of changes in equity of Ndiza Traders for the year ended 30 June 2021?
a.R251 490
b.R371 490
c.R251 590
d.R360 000
e.R240 000
Q.27
Which one of the following alternatives represents the correct amount that must be disclosed as property, plant and equipment in the statement of financial position of Ndiza Traders as at 30 June 2021?
a.R 84 500
b.R 84 400
c.R123 200
d.R 96 000
e.R134 800
Q.28
Which one of the following alternatives represents the correct amount that must be disclosed as trade and other receivables in the statement of financial position of Ndiza Traders as at 30 June 2021?
a.R77 300
b.R38 240
c.R38 250
d.R77 550
e.R77 050
Q.29
Which one of the following alternatives represents the correct amount that must be disclosed as cash and cash equivalents or bank overdraft in the statement of financial position of Ndiza Traders as at 30 June 2021?
a.R156 760 (Bank overdraft)
b.R 83 240
c.R183 240
d.R 83 140
e.R 56 760 (Bank overdraft)
Q.30
Assuming that the profit available for distribution to partners amounted to R20 000, which one of the following alternatives represents the correct balance in the current account of Sparrow on 30 June 2021?
a.R75 000
b.R68 000
c.R67 000
d.R68 056
e.R60 000
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