QUESTION 1

IGNORE TAX AND VAT

A Limited, a South African company, sold a machine to a company in America for $100000. The transaction date is 1 July 2015. The machines carrying amount at 1 January 2015 was R1000000 (cost: R2000000), on which date it had a remaining useful life of 5 years and nil residual value.

The American-based company paid A Limited $50000 on 30 November 2015 and $50000 on 31 January 2016.

Related exchange rates are as follows:

R = $1

1 July 2015 13,00

30 November 2015 13,50

31 December 2015 13,25

31 January 2016 12,90

REQUIRED

Provide all journals in A Limiteds general journal for the years ended 31 December 2015 and 31 December 2016.

Journal narrations are not required.

Ignore tax and VAT