he of the following alternatives represents the correct amount that mi d as finance costs in the statement of profit or loss and ensive income of Zethu Jewelleries for the year ended 28 February 20
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
![ZETHU JEWELLERIES
EXTRACT OF FINANCIAL INFORMATION AT 28 FEBRUARY 20.2:
Note
R
Capital: Zozi
Capital: Sethu
Current account: Zozi (1 March 20.1) Cr
Current account: Sethu (1 March 20.1) Dr
Long-term loan from Zozi
Land and buildings
Trade receivables control
Office equipment at cost
Vehicle at cost
Accumulated depreciation: Office equipment (1 March 20.1)
Accumulated depreciation: Vehicles (1 March 20.1)
Allowance for credit losses
Allowance for settlement
Inventory
Purchases
Interest expense on long-term loan
Carriage on purchases
Carriage on sales
Settlement discount received
Sales
Settlement discount granted
Salaries and wages
Advertising expense
Stationery expenses
Water and electricity
546 000
824 500
42 000
52 800
63 400
855 000
90 300
494 010
669 620
60 180
165 280
7 160
8 000
264 470
1 033 700
10 940
6 120
7 590
15 190
2 160 380
21 510
1313 930
16 210
18 980
62 970
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![QUESTION 10
Which one of the following alternatives represents the correct amount that must be
disclosed as finance costs in the statement of profit or loss and other
comprehensive income of Zethu Jewelleries for the year ended 28 February 20.2?
A. 5 200
B. 7 920
C. 6 880
D. 5 980
E. 9 110
F. 10 940](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5d066935-fb05-42ac-a3cc-8581e0fc5b07%2F8c02f25f-0843-4357-9651-e0f5ca584337%2Fohbma98_processed.jpeg&w=3840&q=75)
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