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1. Identify the liability from the information for each part. 2. Discuss how the liability must be recognised and measured. 3. Provide the journal entries
1. Identify the liability from the information for each part. 2. Discuss how the liability must be recognised and measured. 3. Provide the journal entries for each part for the year ended 30 April 2023. Please note: Ignore any VAT or income tax implications. Journal narrations are not required. Round all amounts to the nearest Rand. Show all the necessary calculations as part of your answer 4. Present and disclose the liability as identified in each part in the financial statements for the year ended 30 April 2023. PART C In the 2022 financial statements of Khoza Bazaar (KB), the following information is disclosed in the directors report at the year end of 30 April 2022: Claim against the company A customer of the company, Eva (Pty) Ltd, claims that certain furniture items delivered to them were broken on arrival. The claim was only instituted two weeks after the delivery was made and could not be verified as true at that time and a refund was denied. Eva (Pty) Ltd instituted a claim of R600 000 for damages. At the year end, the claim was being investigated by the lawyers for legality. On 1 August 2022, the lawyers were notified of the impending court date (being 15 November 2022) and that the claim was increased to also include Eva (Pty) Ltds attorney fees of R120 000. The court date was however postponed to 20 May 2023. The lawyers of KB are still uncertain whether the claim against the company will succeed but stated that Eva (Pty) Ltds attorney fees might in any case have to be paid
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