Answers
FAC3761 ASSIGNMENT 3 OF 2020
- Course
- Institution
- Book
Answers study book International Financial Reporting Standards of Hennie van Greuning - ISBN: 9780821367698 (Detailed Assignment)
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
FAC3702 Assignment 1 (QUALITY ANSWERS) Semester 1 2024
-
FAC2601 EXAM PACK 2022
-
FAC3762 ASSIGNMENT 1 OF 2021
Seller
Follow
Ian09
Reviews received
Content preview
FAC3761 ASSIGNMENT 3 OF 2020QUESTION 1
LOOK & FIND LTD
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH
2020
1. PROPERTY, PLANT & EQUIPMENT
Land Buildings Equipment Vehicles
R R R R
Carrying amount at the beginning of the year 600 000 1 811 500 - 543 750
Cost / Gross Carrying Amount [𝐶4(𝑖)] 600 000 2 000 000 - 750 000
Accumulated Depreciation [𝐶2(𝑖) & 𝐶4(𝑖𝑖)] - (188 500) - (206 250)
Revaluation (𝐶1) 50 000 - - -
Additions at cost [𝐶3(𝑖)] - - 850 750 -
Depreciation [𝐶2(𝑖𝑖), 𝐶3(𝑖𝑖) & 𝐶4(𝑖𝑖𝑖)] - (51 103) (173 938) (148 875)
Disposals during year [𝐶4(𝑖𝑣)] - - - (243 000)
Carrying amount at end of year 650 000 1 760 397 676 812 151 875
Cost / Gross Carrying Amount 650 000 2 000 000 850 750 375 000
Accumulated Depreciation [𝐶4(𝑣)] - (239 603) (173 938) (223 125)
Land was revalued on 31 March 2020 by an independent sworn appraiser.
The carrying amount of the land if it was carried at cost would have amounted to
R500 000.
Calculations
C1. Land
Revaluation = (650 000 − 600 000)
= 𝑹𝟓𝟎 𝟎𝟎𝟎
C2. Buildings
(2 000 000−550 000) 39
i. Accumulated Depreciation – beginning of year =[ ∗ ]
25 12
= 𝑹𝟏𝟖𝟖 𝟓𝟎𝟎
12
ii. Depreciation for the year = [(1 811 500 − 700 000) ∗ ]
261
= 𝑹𝟓𝟏 𝟏𝟎𝟑
, C3. Equipment
i. Cost
R
Purchase price 805 000
Trade discount received (25 000)
Costs of testing whether the equipment is functioning properly 15 750
Professional fees of software engineer 55 000
Cost of equipment 850 750
(850 750 – 155 000)
ii. Depreciation for the year =[ ]
4
= 𝑹𝟏𝟕𝟑 𝟗𝟑𝟖
C4. Vehicles
i. Cost = (375 000 ∗ 2)
= 𝑹𝟕𝟓𝟎 𝟎𝟎𝟎
ii. Accumulated Depreciation at beginning of year
R
25 000 93 750
Vehicle A (100 000 ∗ 375 000)
30 000
Vehicle B (100 000 ∗ 375 000) 112 500
206 250
iii. Depreciation for the year
R
10 200 38 250
Vehicle A (100 000 ∗ 375 000)
(15 000 + 14 500)
Vehicle B [ ∗ 375 000) 110 625
100 000
148 875
iv. Disposals during year = (375 000 − 93 750 − 38 250)
= 𝑹𝟐𝟒𝟑 𝟎𝟎𝟎
v. Accumulated depreciation at end of year = (112 500 + 110 625)
= 𝑹𝟐𝟐𝟑 𝟏𝟐𝟓
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Ian09. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.16. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now