(2) (15) (2) (8) QUESTION 3 - FIXED/TANGIBLE ASSETS & VAT FIXED/TANGIBLE ASSETS The following information was extracted from the records of Elijah Traders for the financial year ended 31 December 2021: INFORMATION: Extensions were made to the buildings during the year. All the old equipment was disposed of on 31 December 2021. It was donated to the local old age home The new equipment was bought on 31 December 2021 Depreciation is calculated as follows: Vehicles at 10% per annum on cost price Equipment at 20% per annum on diminishing balance 3.1 Explain how the asset register will assist the internal auditor in the course of him performing his duties. 3.2 Complete the FIXED/TANGIBLE ASSET NOTE. 3.3 Explain the R1 value of vehicles on 31 December 2021. 3.4 Reconstruct the Asset Disposal account in the General Ledger. 3.5 If the equipmint was sold for a profit instead of beiong donated, what effect would it have had on the financial statements of the company. 19 (4) 447