Khoza Bazaar Ltd has a number of investments in other companies. On 31 December 20.13 the following balances, amongst others, appeared in the records of Khoza Bazaar Ltd. Ignore VAT for this question. Investment in Pius (Pty) Ltd- at cost price (600 000 shares) Investment in Queen Ltd- at fair value (31 Dec 20.12) Investment in Jane (Pty) Ltd-at cost price (80 000 shares) Investment in Luke Ltd - at fair value (31 Dec 20.12) Investment in Sam (Pty) Ltd-at cost price (10% interest) Accumulated impairment- Investment in Sam (Pty) Ltd Dr Cr Notes R R 1 20 500 000 24555 10 200 000 2 900 000 17 250 000 2 200 000 600 000 880 000 2 750 000 Management fee income from Plus (Pty) Ltd Dividend income from Queen Ltd 1 2 Dividend income from Luke Ltd 4 2 250 000 Proceeds from sale- shares in Sam (Pty) Ltd 5 1 575.000 ADDITIONAL INFORMATION 1 Plus (Pty) Ltd has an issued share capital of 1 000 000 shares Plus (Pty) Ltd pays, after being Invoiced, a monthly management fee of R80 000 to Khoza Bazaar Ltd. On 15 December 20.13, Pius (Pty) Ltd declared a dividend of R0 per share. This dividend income still has to be recognised in the records of Khoza Bazaar Ltd. 2 Queen Ltd is listed on the JSE. A few years ago Khoza Bazaar Ltd purchased 600 000 (5%) of the ordinary shares in Queen Ltd. The fair value of a Queen Ltd share was R20 on 31 December 20.13 and the effect thereof still has to be appropriately recognised in the records of Khoza Bazaar Ltd. 3 Jane (Pty) Ltd's financial results for 20.13 and 20.12 was disappointing. As a result on 31 December 20.13 Khoza Bazaar Ltd consequently considered the investment in Jane (Pty) Ltd for impairment and determined that the recoverable amount of the investment was R2 100 000. The Issued share capital of Jane (Pty Ltd) is 800 000. The impairment of the investment in Jane (Pty) Ltd still has to be recognised in the records of Khoza Bazaar Ltd. 4 The investment in Luke Ltd (500 000 ordinary shares) was purchased a number of years ago The issued ordinary shares (50 000 000) of Luke Ltd are listed on the JSE Khoza Bazaar Ltd follows the fair value model for the subsequent measurement of the investment in Luke Ltd. The fair value of a Luke Ltd share was R38 on 31 December 20.13 and the effect thereof still has to be appropriately recognised in the records of Khoza Bazaar Ltd. 5 On 1 March 20.13, Khoza Bazaar Ltd sold the shares in the Sam (Pty) in accordance with the private company's memorandum of incorporation. No entries have been recognised yet. REQUIRED: 1.1 Recognise the outstanding transactions in the financial records (general journal) of Khoza Bazaar Ltd for the reporting period ended 31 December 20.13. (14) 1.2 Disclose the Investments in the Financial Statements of Khoza Bazaar Ltd for the reporting period ended 31 December 20.13 (16) Instructions: Your solution to the above two questions can be completed in a Word document, Excel spreadsheet or neatly written per hand and must then be uploaded in the assignment link as provided.