Question 1 (Marks: 50)

The following balances appeared in the books of Santiago Traders on 1 March 2020: Land and Buildings Vehicles Machinery Accumulated Depreciation on Vehicles Accumulated Depreciation on Machinery 900 000 250 000 200 000 ? ?
Additional information: A new building was purchased for cash on the 1st September 2020 for R1 000 000. The vehicles balance at 1 March 2020 consists of two vehicles. Vehicle A with a cost price of R120 000 was sold on the 31st October 2020 on credit to Miss Smith for R60 000. The vehicle was purchased on the 31 May 2018. Vehicle B was purchased on the 1 March 2019. Purchased a new delivery vehicle (Vehicle C) for R345 000 on credit from N&N Motors on 1 December 2020 All machinery was purchased on the 30 April 2017 The depreciation policy on non-current assets are as follows: o Vehicles: 20% on cost using the straight-line method and no residual value o Machinery: 10% per annum using the diminishing balance method and no residual value IGNORE VAT Santiago Traders has a 28 February year end
Q.1.1	Journalise ALL the above transactions for the year ended 28 February 2021 in the General Journal including the year-end adjustment entries for depreciation. Round off to the nearest Rand Narrations are not required	(46)

Q.1.2

If Santiago Traders wants to sell Vehicle C on 31 May 2021 and make a profit on sale of the vehicle, how much should Santiago Traders sell the vehicle for? Provide calculations to support your answer