Teach Ltd ('Teach) was incorporated in June 2008 and commenced with trading as from 1 July 2008 . The financial year-end is 30 June. The company applies International Financial Reporting Standards (IFRS). Teach has been a registered VAT vendor as from 1 September 2009. Teach has various directors who are responsible for the management of the entity. All directors agreed to apply a policy to only conduct business with other businesses also registered for VAT, and ensured that proper documents are kept in order to claim valid input VAT deductions at all times. Property, plant and equipment - The welding machine and spray-oven will be depreciated over its expected useful life taking into account estimated residual values. It will be accounted for under the cost model in terms of IAS 16. No changes in useful lives or estimated residual values took place during the current financial year for any asset. Other assets On 1 March 2021, a major part of the spray-oven was removed and had to be replaced as it caused all paintwork to appear dull and smudged. This major part had not been recorded as a separate component on date of acquisition of the spray-oven. The accountant and financial director are both of the opinion that this major part made up at least 60% of the original cost price of the spray oven and also 60% of the estimated residual value. The old part was sold to the scrap-yard on 1 March 2021 and a total of N\$3 477 (including VAT) was received for the part. \begin{tabular}{|l|l|l|l|} \hline \multicolumn{2}{|l|}{ REQUIRED: } & MARKS \\ \cline { 2 - 4 } & Subtotal & Total \\ \hline 3.1 & Usinginformationfromparta,preparetheleasejournalentriesrequiredtoaccountfortheleaseofthespray-ovenforthefinancialyearended30June2021. & 15 & 15 \\ \hline & Journal narrations are not required. & & \\ \hline \end{tabular}