Phaduli Boerdery, a cattle feedlot business supplying to various abattoirs around Mpumalanga, is a partnership between Itani and Ndivhuwo. The following information relates to the business activities of the partnership for the year ended 30 June 2023.


EXTRACT OF BALANCES AS AT 30 JUNE 2023
R
Land and building at cost R672,800
Vehicle at cost R362,240
Accumulated depreciation: Vehicles R16,710
Inventory R29,770
Bank (positive) R130,070
Trade receivables control R163,080
Allowance for credit losses R4,000
Prepayment: Veterinary services R54,040
Trade payables control R76,490
Drawings: Itani (30 June 2023) R5,936
Drawings: Ndivhuwo (30 June 2023) R11,830
Capital: Itani R152,100
Capital: Ndivhuwo R147,180
Current account: Itani (CR: 1 July 2022) R15,270
Current account: Ndivhuwo (DR: 1 July 2022) R12,640
Profit for the year R191,420

2. Supplementary information:

2.1 Partnership agreement specifics between the partners:

2.1.1 Profit and loss share between Itani and Ndivhuwo are shared equally.

2.1.2 Each partner is due a salary of R18,500 monthly. As of 30 June 2023, Itani and Ndivhuwo received R15,200 and R16,500 respectively as their monthly salaries for only 11 months of the year, which has not yet been recorded in the partnership’s financial records.

2.1.3 An annual interest rate of 14% is applied to the opening balances of the partners’ capital and current accounts.

2.2 Adjustments at the end of the year:

2.2.1 As of 30 June 2023, it was decided that an outstanding debt of R22 850, owed to the business, would be classified as irrecoverable and thus needs to be written off.

2.2.1 The business needed to expand and get additional land for the backgrounding of cattle bought at less than 250kg. On 30 June 2023, Itani’s father provided a loan of R600,000 to the partnership to buy the additional adjacent land. The farmland was purchased only purchased on 2 January 2024 at a cost of R600 000. This loan is considered long-term, bearing an 8% annual interest rate, and is structured to be repaid over 6 years with equal payments, starting from 30 June 2024. This transaction is yet to be recorded.


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 Phaduli Boerdery for the year ended 30 June 2022?

a.
R 301,910

b.
R 327,190

c.
R 296,650

d.
R 299,000

e.
R 299,280