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5 IGNORE VAT AND TAXATION ( 1 9 marks: 3 4 minutes ) Shenelda ( Shenelda ) Limited is a construction company that
IGNORE VAT AND TAXATION marks: minutes Shenelda Shenelda Limited is a construction company that has operated successfully for many years. The company has a December yearend. The company has various items of plant in the production of various buildings. All items of property, plant, and equipment are measured using the cost model. One item of the plant was purchased on January at a total cost of R Due to the nature of the plant, Shenelda is legally obligated to decommission the plant. It is estimated that Shenelda will pay R to fulfill its obligation after years of the initial purchase of the plant. The applicable discount rate is On January it was estimated that the expected economic outflow on December would be increased by R The plant is depreciated over its useful life of years to a nil residual value, using the straight line method. You are required to: Prepare the general journal entries for the year ended December in the accounting records of Shenelda Limited. marks Presentation
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