Ignore VAT Round to the nearest rand Izinkuni (Pty) Ltd has a year-end of 30 November. The company owns a plot of land near Atlantis in the Western Cape. The company accepts delivery of felled trees, chops them into small pieces, stores them to let them dry, and then delivers this firewood to nearby residences. Besides the plot of land, the company's only other significant class of PPE is vehicles. The pre-adjustment trial balance as at 30 November 2020 included the following information: Izinkuni (Pty) Ltd: Pre-adjustment trial balance (extract) as at 30 November 2020 (in rands) DR CR PPE: Land 11 000 000 Revaluation surplus 2 000 000 Additional information 1. Land is measured using the revaluation model, with revaluations made at the end of every financial year. The plot had been purchased in February 2013 at a cost of R6 000 000, and its fair value on 30 November 2020 was R4 000 000. 2. Vehicles are measured using the cost model and depreciated down to a residual value of 10% of cost using the units of production method. On 1 December 2019, the company owned a delivery truck and a forklift. On this date, the delivery truck had travelled 46 000 km of its total estimated useful life of 100 000 kms, and the forklift had travelled 776 km of its total estimated useful life of 2 000 kms. The cost of the delivery truck was R489 000, and the cost of the forklift was R272 000. 3. The delivery truck travelled a further 12 000 km during the 2020 financial year. On 1 September 2020, after the forklift had travelled a further 50 km since 1 December 2019, the forklift was sold, giving rise to a loss on disposal of R67 000. A new forklift was purchased on 1 November 2020 for R317 000, and was ready for use on this date, but due to an outbreak of Covid-19 amongst the employees, the company was closed during November, and the forklift was not used until 3 December 2020. 4. No vehicles have been impaired. 5. Izinkuni (Pty) Ltd recognises a sales return provision because it offers its customers a money-back guarantee: if they are not 100% satisfied with the quality of their firewood, they may return it within 3 months for a full refund. Izinkuni (Pty) Ltd estimates that on any given date 10% of sales over the past 3 months will be returned for a refund. Sales from 1 September 2019 to 30 November 2019 were R772 000, and sales from 1 September 2020 to 30 November 2020 were R844 000. During the 2020 financial year, Izinkuni (Pty) Ltd refunded customers a total of R309 000. 6. In its 2019 financial year, Izinkuni (Pty) Ltd was sued by an ex-employee for an injury the employee suffered while working for the company. On 30 November 2019, the company's lawyers estimated that the expected outflow would be R393 000 on 30 November 2021. At a discount rate of 10% p.a., the present value on 30 November 2019 was R324793.38843. During the 2020 financial year, another employee was injured, and joined the ex-employee's lawsuit. On 30 November 2020, the company's lawyers estimated that this would double the expected outflow on 30 November 2021. The time value of money was considered material on 30 November 2020. You are required to: 1. Complete the PPE reconciliation note as it would appear in the notes to the financial statements for the year ended 30 November 2020. (Write the full rand value, including zeroes but not including the R. If a figure should appear as a negative, use a minus sign before the figure to indicate that it should be negative. Do not leave any blanks empty: insert a zero if the blank should not contain a value or if you do not know the answer.) [20 marks] Izinkuni (Pty) Ltd: Notes to the financial statements (extract) for the year ended 30 November 2020 (in rands) PPE Reconciliation note Land Vehicles Gross carrying amount, 1/12/2019 Accumulated depreciation, 1/12/2019 Accumulated impairment, 1/12/2019 Carrying amount, 1/12/2019 Additions Disposals Depreciation Impairment loss in P/L) Revaluation in OCI) Carrying amount, 30/11/2020 Gross carrying amount, 30/11/2020 Accumulated depreciation, 30/11/2020 Accumulated impairment, 30/11/2020 2. Complete the quantitative portion of the provisions note as it would appear in the notes to the financial statements for the year ended 30 November 2020. (Write the full rand value, including zeroes but not including the R. If a figure should appear as a negative, use a minus sign before the figure to indicate that it should be negative. Do not leave any blanks empty: insert a zero if the blank should not contain a value.) [10 marks] Izinkuni (Pty) Ltd: Notes to the financial statements (extract). for the year ended 30 November 2020 (in rands) Provisions Sales returns provision Legal provision Balances, 1/12/2019 Utilisations Charges Unwinding of discount Balances, 30/11/2020 Note! Before you submit, check that for both questions you have: Put a zero in every blank that should not contain a value, or if you do not know the answer. (Don't leave any cells empty!). Use a minus sign before any figures that should appear as negatives Rounded to the nearest rand, if necessary Written full rand values, including zeroes but not including the "R" Ignore VAT Round to the nearest rand Izinkuni (Pty) Ltd has a year-end of 30 November. The company owns a plot of land near Atlantis in the Western Cape. The company accepts delivery of felled trees, chops them into small pieces, stores them to let them dry, and then delivers this firewood to nearby residences. Besides the plot of land, the company's only other significant class of PPE is vehicles. The pre-adjustment trial balance as at 30 November 2020 included the following information: Izinkuni (Pty) Ltd: Pre-adjustment trial balance (extract) as at 30 November 2020 (in rands) DR CR PPE: Land 11 000 000 Revaluation surplus 2 000 000 Additional information 1. Land is measured using the revaluation model, with revaluations made at the end of every financial year. The plot had been purchased in February 2013 at a cost of R6 000 000, and its fair value on 30 November 2020 was R4 000 000. 2. Vehicles are measured using the cost model and depreciated down to a residual value of 10% of cost using the units of production method. On 1 December 2019, the company owned a delivery truck and a forklift. On this date, the delivery truck had travelled 46 000 km of its total estimated useful life of 100 000 kms, and the forklift had travelled 776 km of its total estimated useful life of 2 000 kms. The cost of the delivery truck was R489 000, and the cost of the forklift was R272 000. 3. The delivery truck travelled a further 12 000 km during the 2020 financial year. On 1 September 2020, after the forklift had travelled a further 50 km since 1 December 2019, the forklift was sold, giving rise to a loss on disposal of R67 000. A new forklift was purchased on 1 November 2020 for R317 000, and was ready for use on this date, but due to an outbreak of Covid-19 amongst the employees, the company was closed during November, and the forklift was not used until 3 December 2020. 4. No vehicles have been impaired. 5. Izinkuni (Pty) Ltd recognises a sales return provision because it offers its customers a money-back guarantee: if they are not 100% satisfied with the quality of their firewood, they may return it within 3 months for a full refund. Izinkuni (Pty) Ltd estimates that on any given date 10% of sales over the past 3 months will be returned for a refund. Sales from 1 September 2019 to 30 November 2019 were R772 000, and sales from 1 September 2020 to 30 November 2020 were R844 000. During the 2020 financial year, Izinkuni (Pty) Ltd refunded customers a total of R309 000. 6. In its 2019 financial year, Izinkuni (Pty) Ltd was sued by an ex-employee for an injury the employee suffered while working for the company. On 30 November 2019, the company's lawyers estimated that the expected outflow would be R393 000 on 30 November 2021. At a discount rate of 10% p.a., the present value on 30 November 2019 was R324793.38843. During the 2020 financial year, another employee was injured, and joined the ex-employee's lawsuit. On 30 November 2020, the company's lawyers estimated that this would double the expected outflow on 30 November 2021. The time value of money was considered material on 30 November 2020. You are required to: 1. Complete the PPE reconciliation note as it would appear in the notes to the financial statements for the year ended 30 November 2020. (Write the full rand value, including zeroes but not including the R. If a figure should appear as a negative, use a minus sign before the figure to indicate that it should be negative. Do not leave any blanks empty: insert a zero if the blank should not contain a value or if you do not know the answer.) [20 marks] Izinkuni (Pty) Ltd: Notes to the financial statements (extract) for the year ended 30 November 2020 (in rands) PPE Reconciliation note Land Vehicles Gross carrying amount, 1/12/2019 Accumulated depreciation, 1/12/2019 Accumulated impairment, 1/12/2019 Carrying amount, 1/12/2019 Additions Disposals Depreciation Impairment loss in P/L) Revaluation in OCI) Carrying amount, 30/11/2020 Gross carrying amount, 30/11/2020 Accumulated depreciation, 30/11/2020 Accumulated impairment, 30/11/2020 2. Complete the quantitative portion of the provisions note as it would appear in the notes to the financial statements for the year ended 30 November 2020. (Write the full rand value, including zeroes but not including the R. If a figure should appear as a negative, use a minus sign before the figure to indicate that it should be negative. Do not leave any blanks empty: insert a zero if the blank should not contain a value.) [10 marks] Izinkuni (Pty) Ltd: Notes to the financial statements (extract). for the year ended 30 November 2020 (in rands) Provisions Sales returns provision Legal provision Balances, 1/12/2019 Utilisations Charges Unwinding of discount Balances, 30/11/2020 Note! Before you submit, check that for both questions you have: Put a zero in every blank that should not contain a value, or if you do not know the answer. (Don't leave any cells empty!). Use a minus sign before any figures that should appear as negatives Rounded to the nearest rand, if necessary Written full rand values, including zeroes but not including the "R