QUESTION ONE

$15$

Arty Party Limited is a newty established digital art and media company. The company engages in the printing of stickers, corporate wear, banners etc.

On $5$ April $2023,$ Arty Party Limited purchased a new printing machine for R$500000.$ The machine was purchased through part payment of cash and a loan. The details of which are;

Cash on $5$ April $2023$ R$100000$

Non$-$current Loan of R$400000,$ payable in $8$ equal instalments of R$50000.$

During the year, depreciation on the printing machine amounted to $R75000.$ This resulted in a carrying amount of the machine at $31$ December $2023$ of R$425000.$

The baiance of the non$-$current loan at $31$ December $2023$ amounted to R$350000.$

The financial statements for the year ended $31$ December $2023$ were prepared and reflected the following;

Machine carrying amount: $R75000$

Non $-$ current Joan: R$0$

Required: