FAC3761 ASSIGNMENT 3 SUGGESTED ANSWERS | DUE 31 AUGUST 2020

FAC3761 ASSIGNMENT 3
ANSWERS
SEMESTER 2 – 2020
DUE DATE: 31 AUGUST 2020

,PLAGIARISM
IS STRICTLY
PROHIBITED!

, QUESTION 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

i. Accumulated Depreciation – beginning of year =(2 000 000-550 000) 39
25 12

= 𝑹𝟏𝟖𝟖 𝟓𝟎𝟎




12
ii. Depreciation for the year = [(1 811 500 − 700 000) ∗ ]
261

= 𝑹𝟓𝟏 𝟏𝟎𝟑