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:

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 700 owed to the business was unlikely to be recovered and should be written

off as bad debt.

REQUIRED:

Assuming

that the profit available for distribution to partners amounted to R560 000. What is the correct balance of

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.