Khanyisile and Tinyiko are business partners in Ride4Yours, a partnership business based in Malelane that
manufactures specialised helmets for motorcycle riders. The business prides itself on using eco-friendly
materials, making their helmets not only durable but also safe and sustainable for the environment.
Khanyisile is passionate about motorcycle riding, while Tinyiko is an advocate for sustainability and green
business solutions. Together, they aim to position Ride4Yours as a leading brand in the motorcycle safety
industry.
Below is the relevant information regarding the partnership’s financial activities for the year ending 30 June
2024.
Balances as at 30 June 2024:
R
Inventory 108,500
Bank (positive) 293,600
Trade receivables control 199,200
Vehicles at cost 708,200
Equipment at cost 209,300
Warehouse building at cost 575,100
Accumulated depreciation: Vehicles 41,700
Accumulated depreciation: Equipment 64,600
Allowance for credit losses 3,000
Trade payables control 119,800
Capital: Khanyisile 431,500
Capital: Tinyiko 246,700
Current account: Khanyisile (Cr: 1 July 2023) 13,300
Current account: Tinyiko (Dr: 1 July 2023) 9,300
2. Supplementary information:
2.1 Details of the partnership agreement between the partners:
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 Khanyisile and Tinyiko.
2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20 000 for Khanyisile and
Tinyiko respectively. As of 30 June 2024, the salaries paid to the partners were only up to 30 April 2024.
2.2 Adjustments at the end of the year:
2.2.1 The business aimed to expand its operations by acquiring additional warehouse for new range of
helmets. On 30 June 2024, Mbombela Bank provided a loan of R468 000 to facilitate the purchase of the
warehouse. The warehouse 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 2023, it was decided that an outstanding debt of R21 900 owed to the business was
unlikely to be recovered and should be written off as bad debt.
REQUIRED:
,Assume the correct trade and other receivables amount is R60 000. What is the correct amount that must be
disclosed as total current assets in the statement of financial position of Ride4Yours as at 30 June 2024?
Instructions:
1. Round off all your answers to the nearest rand (eg: 50.56 = 51)
2. Don’t use any special characters (&) and don’t use bold in your answer.
3. Do not use any abbreviations.
4. Do not use brackets () to indicate a negative amount, instead use the minus sign “–“, e.g. (50) will be
indicated as -50.
Answer: 462100
,Khanyisile and Tinyiko are business partners in Ride4Yours, a partnership business based in Malelane that
manufactures specialised helmets for motorcycle riders. The business prides itself on using eco-friendly
materials, making their helmets not only durable but also safe and sustainable for the environment.
Khanyisile is passionate about motorcycle riding, while Tinyiko is an advocate for sustainability and green
business solutions. Together, they aim to position Ride4Yours as a leading brand in the motorcycle safety
industry.
Below is the relevant information regarding the partnership’s financial activities for the year ending 30 June
2024.
Balances as at 30 June 2024:
R
Inventory 108,400
Bank (positive) 293,600
Trade receivables control 199,200
Vehicles at cost 708,200
Equipment at cost 209,300
Warehouse building at cost 575,100
Accumulated depreciation: Vehicles 41,700
Accumulated depreciation: Equipment 64,500
Allowance for credit losses 3,000
Trade payables control 119,800
Capital: Khanyisile 431,500
Capital: Tinyiko 246,700
Current account: Khanyisile (Cr: 1 July 2023) 13,400
Current account: Tinyiko (Dr: 1 July 2023) 9,400
2. Supplementary information:
2.1 Details of the partnership agreement between the partners:
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 Khanyisile and Tinyiko.
2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20 000 for Khanyisile and
Tinyiko respectively. As of 30 June 2024, the salaries paid to the partners were only up to 30 April 2024.
2.2 Adjustments at the end of the year:
2.2.1 The business aimed to expand its operations by acquiring additional warehouse for new range of
helmets. On 30 June 2024, Mbombela Bank provided a loan of R468 000 to facilitate the purchase of the
warehouse. The warehouse 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 R21 800 owed to the business was
unlikely to be recovered and should be written off as bad debt.
REQUIRED:
What is the correct amount that must be disclosed as trade and other receivables in the statement of
financial position of Ride4Yours as at 30 June 2024?
, Instructions:
1. Round off all your answers to the nearest rand (eg: 50.56 = 51)
2. Don’t use any special characters (&) and don’t use bold in your answer.
3. Do not use any abbreviations.
4. Do not use brackets () to indicate a negative amount, instead use the minus sign “–“, e.g. (50) will be
indicated as -50.
Answer: 174400
manufactures specialised helmets for motorcycle riders. The business prides itself on using eco-friendly
materials, making their helmets not only durable but also safe and sustainable for the environment.
Khanyisile is passionate about motorcycle riding, while Tinyiko is an advocate for sustainability and green
business solutions. Together, they aim to position Ride4Yours as a leading brand in the motorcycle safety
industry.
Below is the relevant information regarding the partnership’s financial activities for the year ending 30 June
2024.
Balances as at 30 June 2024:
R
Inventory 108,500
Bank (positive) 293,600
Trade receivables control 199,200
Vehicles at cost 708,200
Equipment at cost 209,300
Warehouse building at cost 575,100
Accumulated depreciation: Vehicles 41,700
Accumulated depreciation: Equipment 64,600
Allowance for credit losses 3,000
Trade payables control 119,800
Capital: Khanyisile 431,500
Capital: Tinyiko 246,700
Current account: Khanyisile (Cr: 1 July 2023) 13,300
Current account: Tinyiko (Dr: 1 July 2023) 9,300
2. Supplementary information:
2.1 Details of the partnership agreement between the partners:
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 Khanyisile and Tinyiko.
2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20 000 for Khanyisile and
Tinyiko respectively. As of 30 June 2024, the salaries paid to the partners were only up to 30 April 2024.
2.2 Adjustments at the end of the year:
2.2.1 The business aimed to expand its operations by acquiring additional warehouse for new range of
helmets. On 30 June 2024, Mbombela Bank provided a loan of R468 000 to facilitate the purchase of the
warehouse. The warehouse 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 2023, it was decided that an outstanding debt of R21 900 owed to the business was
unlikely to be recovered and should be written off as bad debt.
REQUIRED:
,Assume the correct trade and other receivables amount is R60 000. What is the correct amount that must be
disclosed as total current assets in the statement of financial position of Ride4Yours as at 30 June 2024?
Instructions:
1. Round off all your answers to the nearest rand (eg: 50.56 = 51)
2. Don’t use any special characters (&) and don’t use bold in your answer.
3. Do not use any abbreviations.
4. Do not use brackets () to indicate a negative amount, instead use the minus sign “–“, e.g. (50) will be
indicated as -50.
Answer: 462100
,Khanyisile and Tinyiko are business partners in Ride4Yours, a partnership business based in Malelane that
manufactures specialised helmets for motorcycle riders. The business prides itself on using eco-friendly
materials, making their helmets not only durable but also safe and sustainable for the environment.
Khanyisile is passionate about motorcycle riding, while Tinyiko is an advocate for sustainability and green
business solutions. Together, they aim to position Ride4Yours as a leading brand in the motorcycle safety
industry.
Below is the relevant information regarding the partnership’s financial activities for the year ending 30 June
2024.
Balances as at 30 June 2024:
R
Inventory 108,400
Bank (positive) 293,600
Trade receivables control 199,200
Vehicles at cost 708,200
Equipment at cost 209,300
Warehouse building at cost 575,100
Accumulated depreciation: Vehicles 41,700
Accumulated depreciation: Equipment 64,500
Allowance for credit losses 3,000
Trade payables control 119,800
Capital: Khanyisile 431,500
Capital: Tinyiko 246,700
Current account: Khanyisile (Cr: 1 July 2023) 13,400
Current account: Tinyiko (Dr: 1 July 2023) 9,400
2. Supplementary information:
2.1 Details of the partnership agreement between the partners:
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 Khanyisile and Tinyiko.
2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20 000 for Khanyisile and
Tinyiko respectively. As of 30 June 2024, the salaries paid to the partners were only up to 30 April 2024.
2.2 Adjustments at the end of the year:
2.2.1 The business aimed to expand its operations by acquiring additional warehouse for new range of
helmets. On 30 June 2024, Mbombela Bank provided a loan of R468 000 to facilitate the purchase of the
warehouse. The warehouse 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 R21 800 owed to the business was
unlikely to be recovered and should be written off as bad debt.
REQUIRED:
What is the correct amount that must be disclosed as trade and other receivables in the statement of
financial position of Ride4Yours as at 30 June 2024?
, Instructions:
1. Round off all your answers to the nearest rand (eg: 50.56 = 51)
2. Don’t use any special characters (&) and don’t use bold in your answer.
3. Do not use any abbreviations.
4. Do not use brackets () to indicate a negative amount, instead use the minus sign “–“, e.g. (50) will be
indicated as -50.
Answer: 174400
