Jupiter Holdings Ltd is a listed company on the JSE. Jupiter Holdings Ltd has a $30$ April reporting

period and the company is a registered VAT vendor. All of its suppliers and customers are registered

for VAT purposes at a rate of $15\%.$

Mr$.$ Edwin Terrestrial, an accountant at Jupiter Holdings Ltd$,$ was tasked with recognising the

necessary journal entries pertaining to investments in subsidiaries and other financial assets of

Jupiter Holdings Ltd for the two years ending $30$ April $2024.$

Having $$completed$$ the work, he sent a memorandum on $29$ April $2024$ to Ms$.$ Princess Leia, the

senior accountant at Jupiter Holdings Ltd$,$ indicating what he had done.

Jupiter Holdings Limited

MEMORANDUM

TO: Princess

FROM: Edwin

RE: Recognition of applicable journal entries pertaining to investments

in subsidiaries and other financial assets

DATE: $29$ April $2024$

Good morning colleague, please find below my notes and copies of journal entries posted pertaining to

investments in subsidiaries and other financial assets for the two years ending $30$ April $2024.$ For every journal

entry I posted, I also noted the transaction that lead to the entry:

$1.$ Venus $($Pty$)$ Ltd

$$ Jupiter Holdings Ltd acquired $82500$ of the $110000$ issued ordinary shares of Venus $($Pty$)$ Ltd on

$1$ December $2022$ at a cost of R$3011250.$

Legal fees of R$723580$ incurred by Jupiter Holdings Ltd on this acquisition was included in the entry.

J$01$

$2022$

Debit

R

Credit

R

$01$ Dec Investment in Venus $($Pty$)$ Ltd $($SFP$)3011250$

Finance cost $($P$/$L$)629200$

VAT Input $($SFP$)(723580$ x $15/115)94380$

Bank $($SFP$)3734830$

Recognise the acquisition of $75\%$ shares in Venus

$($Pty$)$ Ltd

$$ On $14$ April $2023$ Jupiter Holdings Ltd invoiced Venus $($Pty$)$ Ltd for management services provided,

R$94000.$ Venus $($Pty$)$ Ltd settled the invoice on $26$ April $2023.$

J$02$a

$2023$

Debit

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Credit

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$14$ Apr Current account: Venus $($Pty$)$ Ltd $($SFP$)94000$

Management fee from Venus $($Pty$)$ Ltd $($P$/$L$)94000$

Recognise management fee receivable from

subsidiary Venus $($Pty$)$ Ltd

J$02$b

$2023$

Debit

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Credit

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$26$ Apr Bank $($SFP$)94000$

Current account: Venus $($Pty$)$ Ltd $($SFP$)94000$

Recognise receipt of management fee from subsidiary

Venus $($Pty$)$ Ltd

$$ On $4$ April $2024$ Venus $($Pty$)$ Ltd declared an ordinary share dividend of $140$c per share to shareholders.

On the same day Jupiter Holdings Ltd sent an invoice of R$160000$ to Venus $($Pty$)$ Ltd for management

services provided.

Venus $($Pty$)$ Ltd made a payment for both dividends and management fees to Jupiter Holdings Ltd on

$25$ April $2024.$

J$03$a

$2024$

Debit

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Credit

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$4$ Apr Current account: Venus $($Pty$)$ Ltd $($SFP$)115500$

Dividend income from Venus $($Pty$)$ Ltd $($P$/$L$)115500$

Recognise dividends declared by subsidiary Venus

$($Pty$)$ Ltd $(82500$ shares x R$1,40)$

J$03$b

$2024$

Debit

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Credit

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$4$ Apr Current account: Venus $($Pty$)$ Ltd $($SFP$)160000$

Management fee from Venus $($Pty$)$ Ltd $($P$/$L$)160000$

Recognise management fee receivable from

subsidiary Venus $($Pty$)$ Ltd

$$ On $30$ April $2024$ the recoverable amount of the investment in Venus $($Pty$)$ Ltd was determined to be

R$3276405.$

J$04$

$2021$

Debit

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Credit

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$30$ Apr Impairment loss $$ investment in Venus $($Pty$)$ Ltd $($P$/$L$)3276405$

Accumulated impairment $$ investment in Venus

$($Pty$)$ Ltd $($SFP$)3276405$

Recognise the most recent recoverable amount of the

investment in Venus $($Pty$)$ Ltd

$2.$ Mars Ltd

$$ Jupiter Holdings Ltd acquired a stake of $25\%$ in the $190000$ ordinary shares of Mars Ltd on $13$ August

$2022$ at an amount of R$1245625$ that included brokerage fees of R$129375.$

J$05$

$2022$

Debit

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Credit

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$13$ Aug Investment in Mars Ltd $($listed shares$)($SFP$)1116250$

Brokerage fees $($P$/$L$)112500$

VAT Input $($SFP$)16875$

Bank $($SFP$)1245625$

Recognise the purchase of $47500$ ordinary shares in

Mars Ltd at R$23,50$ per share plus brokerage fees of

R$129375$

$$ On $5$ January $2023$ Mars Ltd declared and paid a dividend of $25$ cents per share.

J$06$

$2023$

Debit

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$5$ Jan Dividends receivable $($SFP$)(47500$ shares x R$0,25)11875$

Dividend income $($listed shares$)($P$/$L$)11875$

Recognise a dividend of $25$ cents per share declared

by Mars Ltd on $5$ January $2023$

J$07$

$2023$

Debit

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Credit

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$5$ Jan Bank $($SFP$)11875$

Dividends receivable $($SFP$)11875$

Derecognise dividends receivable from Mars Ltd due

to receipt of the dividends on $5$ Jan $2023$

$$ The following JSE listed share prices of Mars Ltd are applicable:

Date Fair value per share

$13/08/2022$ R$23\mathrm{.}50$

$31/12/2022$ R$24\mathrm{.}85$

$14/02/2023$ R$23\mathrm{.}60$

$30/04/2023$ R$25\mathrm{.}25$

$30/08/2023$ R$24\mathrm{.}30$

$31/12/2023$ R$28\mathrm{.}50$

$28/02/2024$ R$22\mathrm{.}75$

$30/04/2024$ R$22\mathrm{.}50$

J$08$

$2023$

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Credit

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$30$ Apr Loss on fair value adjustment of shares $($P$/$L$)83125$

Investment in Mars Ltd $($listed shares$)($SFP$)83125$

Recognise the loss with the subsequent measurement

of $47500$ Mars Ltd shares at R$25,25$ per share

$(($R$23,50$ R$25,25)$ x $47500$ shares$)$

$$ On $28$ February $2024$ Jupiter Holdings Ltd sold all of its shares in Mars Ltd to Pluto Ltd and received

payment