Given information to questions 1 6 below:

Mbazo Forestry 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 2022.

1. Balances as at 30 June 2022:

MBAZO FORESTRY
BALANCES AS AT 30 JUNE 2022
Capital: Ukhozi	R90 000
Capital: Sparrow	R70 000
Current account: Ukhozi (Dr: 1 July 2021)	R2 500
Current account: Sparrow (Cr: 1 July 2021)	R1 250
Drawings: Ukhozi (30 June 2022)	R4 490
Drawings: Sparrow (30 June 2022)	R7 000
Trade payables control	R54 930
Bank (positive)	R83 240
Inventory	R22 500
Trade receivables control	R38 500
Allowance for credit losses	R250
Vehicle at cost	R96 000
Building at cost	R120 000
Accumulated depreciation: Vehicles	R11 600
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 2022, the partners were paid R10 000 each as a month salary. 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 2022 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 2023.

2.2.1 On 30 June 2022, a debtor owing the business R150 must still be written off as irrecoverable.

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 Mbazo Forestry for the year ended 30 June 2021?

a.

R161 250

b.

R149 760

c.

R158 750

d.

R160 000

e.

R161 300

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Which one of the following alternatives represents the correct amount that must be disclosed as drawings in the statement of changes in equity of Mbazo Forestry for the year ended 30 June 2022?

a.

R240 000

b.

R 31 490

c.

R251 490

d.

R371 490

e.

R360 000

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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 Mbazo Forestry as at 30 June 2022?

a.

R204 400

b.

R134 800

c.

R123 200

d.

R 84 500

e.

R 96 000

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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 Mbazo Forestry as at 30 June 2022?

a.

R77 550

b.

R38 250

c.

R77 300

d.

R38 500

e.

R38 100

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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 Mbazo Forestry as at 30 June 2022?

a.

R 83 240

b.

R 83 140

c.

R163 240

d.

R156 760 (Bank overdraft)

e.

R 56 760 (Bank overdraft)

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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 2022?

a.

R178 000

b.

R. 68 056

c.

R180 800

d.

R 68 000

e.

R 70 800

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A credit balance on a ledger account indicates

a.

an amount owing to the business

b.

a liability or income

c.

an asset or expense

d.

a liability or an expense

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Which one of the following expenses should be included in cost of inventories sold during the year?

a.

Depreciation on delivery vehicle

b.

Carriage on purchases

c.

Insurance on deliveries

d.

Carriage on sales