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Business
Accounting
Extract of balances as at 30 June 2024: Inventory Bank (positive) Trade receivables control Vehicles at cost R R106,800 R293,600 R199,200 R708,200 Equipment at cost R209,300 Factory building at cost R575,100 Accumulated depreciation: Vehicles R41,700 Accumulated depreciation: Equipment R68,400 Allowance for credit losses R3,000 Trade payables control R119,800 Capital: Khanyisa R431,500 Capital: Zinhle R246,700 Current account: Khanyisa (Cr: 1 July 2023) R13,300 Current account: Zinhle (Dr: 1 July 2023) R9,400 2. Supplementary information: 2.1 Details of the partnership agreement between the partners: Time left 1:31:46 2.1.1 An annual interest rate of 6% is applied to the opening balances of the partners' capital and current accounts. 2.1.2 Profits and losses are shared equally between Khanyisa and Zinhle. 2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20 000 for Khanyisa and Zinhle respectively. As of 30 June 2024, the salaries paid to the partners were only up to 30 April 2024. Adjustments at the end of the year. 2.2 2.2.1 The business aimed to expand its operations by acquiring additional land for sunflower cultivation. On 30 June 2024, KEN Corp provided a loan of R468 000 to facilitate the purchase of a farm. The farmland was acquired on 2 July 2024 at the cost of R468,000. This loan is classified as long-term, with an 8% annual interest rate, to be repaid over 6 years with equal instalments starting from 30 June 2025. This transaction has not yet been recorded. 2.2.1 On 30 June 2024, it was decided that an outstanding debt of R17 100 owed to the business was unlikely to be recovered and should be written off as bad debt. 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 Qabaqongo Oils for the year ended 30 June 2023? OA R682,100 O B. R684,200 OC R700,900 OD. R678,200 OE R682,200

Extract of balances as at 30 June 2024: Inventory Bank (positive) Trade receivables control Vehicles at cost R R106,800 R293,600 R199,200 R708,200 Equipment at cost R209,300 Factory building at cost R575,100 Accumulated depreciation: Vehicles R41,700 Accumulated depreciation: Equipment R68,400 Allowance for credit losses R3,000 Trade payables control R119,800 Capital: Khanyisa R431,500 Capital: Zinhle R246,700 Current account: Khanyisa (Cr: 1 July 2023) R13,300 Current account: Zinhle (Dr: 1 July 2023) R9,400 2. Supplementary information: 2.1 Details of the partnership agreement between the partners: Time left 1:31:46 2.1.1 An annual interest rate of 6% is applied to the opening balances of the partners' capital and current accounts. 2.1.2 Profits and losses are shared equally between Khanyisa and Zinhle. 2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20 000 for Khanyisa and Zinhle respectively. As of 30 June 2024, the salaries paid to the partners were only up to 30 April 2024. Adjustments at the end of the year. 2.2 2.2.1 The business aimed to expand its operations by acquiring additional land for sunflower cultivation. On 30 June 2024, KEN Corp provided a loan of R468 000 to facilitate the purchase of a farm. The farmland was acquired on 2 July 2024 at the cost of R468,000. This loan is classified as long-term, with an 8% annual interest rate, to be repaid over 6 years with equal instalments starting from 30 June 2025. This transaction has not yet been recorded. 2.2.1 On 30 June 2024, it was decided that an outstanding debt of R17 100 owed to the business was unlikely to be recovered and should be written off as bad debt. 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 Qabaqongo Oils for the year ended 30 June 2023? OA R682,100 O B. R684,200 OC R700,900 OD. R678,200 OE R682,200

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Extract of balances as at 30 June 2024: Inventory Bank (positive) Trade receivables control Vehicles at cost R R106,800 R293,600 R199,200 R708,200 Equipment at cost R209,300 Factory building at cost R575,100 Accumulated depreciation: Vehicles R41,700 Accumulated depreciation: Equipment R68,400 Allowance for credit losses R3,000 Trade payables control R119,800 Capital: Khanyisa R431,500 Capital: Zinhle R246,700 Current account: Khanyisa (Cr: 1 July 2023) R13,300 Current account: Zinhle (Dr: 1 July 2023) R9,400 2. Supplementary information: 2.1 Details of the partnership agreement between the partners: Time left 1:31:46 2.1.1 An annual interest rate of 6% is applied to the opening balances of the partners' capital and current accounts. 2.1.2 Profits and losses are shared equally between Khanyisa and Zinhle. 2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20 000 for Khanyisa and Zinhle respectively. As of 30 June 2024, the salaries paid to the partners were only up to 30 April 2024. Adjustments at the end of the year. 2.2 2.2.1 The business aimed to expand its operations by acquiring additional land for sunflower cultivation. On 30 June 2024, KEN Corp provided a loan of R468 000 to facilitate the purchase of a farm. The farmland was acquired on 2 July 2024 at the cost of R468,000. This loan is classified as long-term, with an 8% annual interest rate, to be repaid over 6 years with equal instalments starting from 30 June 2025. This transaction has not yet been recorded. 2.2.1 On 30 June 2024, it was decided that an outstanding debt of R17 100 owed to the business was unlikely to be recovered and should be written off as bad debt. 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 Qabaqongo Oils for the year ended 30 June 2023? OA R682,100 O B. R684,200 OC R700,900 OD. R678,200 OE R682,200
Transcribed Image Text:Extract of balances as at 30 June 2024: Inventory Bank (positive) Trade receivables control Vehicles at cost R R106,800 R293,600 R199,200 R708,200 Equipment at cost R209,300 Factory building at cost R575,100 Accumulated depreciation: Vehicles R41,700 Accumulated depreciation: Equipment R68,400 Allowance for credit losses R3,000 Trade payables control R119,800 Capital: Khanyisa R431,500 Capital: Zinhle R246,700 Current account: Khanyisa (Cr: 1 July 2023) R13,300 Current account: Zinhle (Dr: 1 July 2023) R9,400 2. Supplementary information: 2.1 Details of the partnership agreement between the partners: Time left 1:31:46 2.1.1 An annual interest rate of 6% is applied to the opening balances of the partners' capital and current accounts. 2.1.2 Profits and losses are shared equally between Khanyisa and Zinhle. 2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20 000 for Khanyisa and Zinhle respectively. As of 30 June 2024, the salaries paid to the partners were only up to 30 April 2024. Adjustments at the end of the year. 2.2 2.2.1 The business aimed to expand its operations by acquiring additional land for sunflower cultivation. On 30 June 2024, KEN Corp provided a loan of R468 000 to facilitate the purchase of a farm. The farmland was acquired on 2 July 2024 at the cost of R468,000. This loan is classified as long-term, with an 8% annual interest rate, to be repaid over 6 years with equal instalments starting from 30 June 2025. This transaction has not yet been recorded. 2.2.1 On 30 June 2024, it was decided that an outstanding debt of R17 100 owed to the business was unlikely to be recovered and should be written off as bad debt. 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 Qabaqongo Oils for the year ended 30 June 2023? OA R682,100 O B. R684,200 OC R700,900 OD. R678,200 OE R682,200
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