Khoza Bazaar Ltd, as well as all of their suppliers, are registered as VAT vendors in accordance with the VAT Act. Khoza Bazaar's current reporting period ends on 31 December 20.7. On 31 December 20.7, the detail of Khoza Bazaar's machinery and equipment was as follows: Machinery Note Dr Cr - Cost price -Accumulated depreciation - 31 Dec 20.6 Equipment - Cost price -Accumulated depreciation - 31 Dec 20.6 The following additional information is available 2 3 450 000 2 2 174 300 13 3 367 500 3 960 000 1 No machinery or equipment was purchased, sold or disposed of during 20.7 other than those mentioned in the paragraphs below. 2 Machinery 2.1 The depreciation expense on machinery is calculated in accordance with the diminishing balance method at a rate of 30% per year. The depreciation expense in respect of machinery for 20.7 still has to be recognised. 2.2 According to the asset register, the detail of machinery on 31 December 20.6 is as follows: Machine 00 R Cost price 1 850 000 Machine PP R 400 000 Machine QQ R 1 200 000 Total R 3 450 000 2.2 According to the asset register, the detail of machinery on 31 December 20.6 is as follows: Machine 00 R Machine PP Machine QQ Total Cost price 1 850 000 R 400 000 R 1 200 000 R 3 450 000 Accumulated depreciation - 31 Dec 20.6 (943 500) 906 500 (172 000) 228 000 (1 058 800) 141 200 (2 174 300) 1 275 700 2.3 On 1 December 20.7, Machine QQ was traded in on Machine RR which was delivered on this date and ready for use as intended by the owner. For purposes of this transaction, the parties settled on a trade-in credit of R221 730 (including VAT). The cost price of Machine RR was R1 653 000 (including VAT) and the applicable amount is payable on 15 January 20.8. Machine QQ still has to be derecognised whilst Machine RR still has to be recognised. 2.4 Machine PP produces a toxic waste during production. Due to complaints handed in at the local authority, the owner decided to withdraw the machine from production on 31 December 20.7. The derecognition of Machine PP still has to be accounted for. method, without accounting for residual values, at a rate of 20% per year. The depreciation expense in respect of equipment for 20.7 still has to be recognised. 3.2 On 1 April 20.7, a purchased equipment item was ready for use as intended by the owner. The purchase price of the equipment item was R1 026 000 (including VAT) and the credit term was 30 days. The purchase of the equipment item and the subsequent payment of the supplier have been correctly accounted for in the accounting records. 3.4 On 31 December 20.7, a specific equipment item was donated to a local school. Detail of the relevant equipment item on 31 December 20.6 were as follows: Cost price Accumulated depreciation - 31 Dec 20.6 R 625 000 (468 750) REQUIRED 156 250 This equipment item that was donated to the local school still has to be derecognised. Provide journal entries resulting from the additional information in the records (general journal) of Khoza Bazaar Ltd for the reporting period ended 31 December 20.7. Note: (30) You are required to indicate next to each account in the journal which element/component of the financial statement is affected by the entry, namely P/L, SCE, SFP in brackets. Dates must be indicated correctly. Where applicable, round off all amounts to the nearest Rand.