FAC3702 ASSESSMENT 1 SEM 1 of 2024 EXPECTED SOLUTIONS

OSCAR DIURA
FAC3702/2024/S1
0737560989
For FAC,ECS,MAC,DSC, TAX,STA,FIN,INV,
REQUIRED: QMI,BNU,
tutoring

(a) Prepare the property, plant and equipment note to the annual 26
financial statements of KipKor Ltd for the year ended 31 December
2023



(b) Calculate the deferred tax balance in the statement of financial 10
position of KipKor Ltd on 31 December 2023, relating to the
property, plant and equipment, using only the statement of financial
position approach.



(c) Prepare all the necessary journal entries to account for the 9
following property, plant and equipment in the records of KipKor
Limited for the years ended 31 December 2022 and 31 December
2023:


i. Delivery vehicles
ii. Administrative building


• Entries relating to depreciation are not required
• Dates are required
• Show in which statement the journal will be processed e.g.,
P/L, OCI, SCE, SFP
• Ignore narrations
• Ignore tax


Accounting policy notes are not required.
Round all amounts to the nearest Rand.
Show all calculations.
Ignore any VAT implications

TOTAL 45




OSCAR DIURA

0737560989
For FAC,ECS,MAC,DSC, TAX,STA,FIN,INV,
QMI,BNU, 4
tutoring

, A) Property, plant and equipment note to the annual financial statements of KipKor Ltd for the year ended 31 December 2023

land Buildings Machinery Vehicles Total
Carrying amount @ 1 January 2023 900,000.00 2,260,000.00 469,000.00 - 3,629,000.00
Gross carrying amount/COST 900,000.00 2,300,000.00 500,000.00 - 3,700,000.00
Accumulated Depreciation - (40,000.00) (31,000.00) - (71,000.00)
Additions -
Transfer from investment property 150,000.00 150,000.00
Revaluation surplus (150,000.00) (50,000.00) (200,000.00)
Depreciation (60,000.00) (53,000.00) (22,500.00) (135,500.00)
Derecognition of intial inspection cost(40000-
20000) (20,000.00) - (20,000.00)
Capitalisation of inspection costs incurred 75,000.00 - 75,000.00
- -
Carrying amount @ 31 December 2023 750,000.00 2,150,000.00 471,000.00 127,500.00 3,498,500.00
Gross carrying amount/COST 750,000.00 2,150,000.00 575,000.00 150,000.00 3,625,000.00
Accumulated Depreciation - - (104,000.00) (22,500.00) (126,500.00)




Machine Inspection component Total
Cost(500000-60000) 440,000.00 60,000.00 500,000.00
Depreciation 20.2 (15/600*440000).(60000/3) (11,000.00) (20,000.00) (31,000.00) OSCAR DIURA
Carrying amount on 31 December 20.2 429,000.00 40,000.00 469,000.00
Depreciation (45/600*440000) (33,000.00) (20,000.00) (53,000.00) 0737560989
For FAC,ECS,MAC,DSC,
Carrying amount on 31 December 20.3 396,000.00 20,000.00 416,000.00
TAX,STA,FIN,INV, QMI,BNU,
tutoring

Depreciation machine 33,000.00
Depreciation – inspection
(initial)(60000/3*12/12) 20,000.00
Depreciation – inspection (new)(75000/3*0/12) -
53,000.00