$1$ July $2023$: Skylark Enterprises sold one of its old machines that had been

purchased on $1$ January $2018.$ The machine had a cost of R$180000,$ and it was

sold for R$60000.$ The company recorded a loss on the disposal. The cash

payment was received on the same day.

$1$ November $2023$: Skylark Enterprises purchased another machine for R$400$

However, it was only available for use from $1$ December $2023.$

The company's general ledger showed the following balances at $1$ January $2023$:

Description

Machinery $-$ Cost

Accumulated Depreciation $-$ Machinery

Amount $(R)$

$800000$

$200000$ REQUIRED:

$4\mathrm{.}1$ Prepare the Machinery $-$ Cost and Accumulated Depreciation $-$ Machinery

general ledger accounts for the year ended $31$ December $2023.$

Instructions:

You must close off $/$ carry forward the account at year$-$end.

Show workings and reference your workings for calculations.

$(24$ marks$)$

$4\mathrm{.}2$ Prepare the necessary journal entries to record the sale, on $1$ July $2023,$ of the

machine which was sold by Skylark Enterprises Ltd$.$

$(8$ marks$)$

$4\mathrm{.}3$ Prepare an extract to display Non$-$Current Assets in the Statement of Financial

Position of Skylark Enterprises Ltd$.$ at $31$ December $2023.$

$(3$ marks$)$ QUESTION $5$

Beta Industries is a company that specialises in manufacturing automotive parts. It

has experienced significant growth over the past few years and is interested in

understanding its current financial position.

Below are the relevant extracts from the company's financial statements:

Beta Industries' management wants to evaluate the company's financial performance

in terms of liquidity, leverage, and profitability.QUESTION $4$REQUIRED:

Using the given financial information, calculate the following ratios and provide a brief

interpretation of each ratio calculated:

Current Ratio: This ratio will help Beta Industries understand its ability to pay off

short$-$term debts.

$(3$ marks$)$

Debt$-$to$-$Equity Ratio: By calculating this ratio, Beta Industries can understand

how much of the company's operations are financed by debt.

$(3$ marks$)$

Return on Equity $($ROE$)$: This ratio will allow Beta Industries to understand how

effectively it is using its equity to generate profits.

Instructions:

Show all calculations and workings.

Round off to two decimal places, where necessary.

Provide a brief interpretation of each ratio calculated.

$(35$ marks$)$

Skylark Enterprises Ltd $(\text{'}$Skylark Enterprises'$),$ a manufacturing firm, has a financial

year$-$end of $31$ December. Skylark Enterprises Ltd follows the cost model for

accounting and reporting its property, plant, and equipment.

The company utilises the straight$-$line method of depreciation and has adopted a

residual value of $10\%$ for all its assets. The estimated useful life for their machinery is

$10$ years.

The following transactions occurred during the $2023$ year:

$2$ January $2023$: Skylark Enterprises purchased machinery worth R$500000.$

This cost does not include installation and transportation costs, which

amounted to R$20000.$ The machine was ready for use as of $2$ January $2023.$