QUESTION TWO [30]

Richy Limited purchased a plant that cost R500 000 on 1 January 2016. Depreciation is provided over its useful life of 5 years using the straight line method to a nil residual value. Richy Limited measures plant under the revaluation model. The plant was revalued as follows: 01 January 2017 R120 000 01 January 2018 R50 000 01 January 2019 R50 000 Richy Limited transfers the maximum amount from the realised portion of the revaluation surplus to equity.

Required: Prepare the journal entries for the plant for years ended 31 December 2016 to 2019