You can answer the required and send them each when you done need em' as soon as possible

The financial statements for the 2019 financial year have been prepared and have been audited as correct. The following extract of the accounting policy note appeared in the financial statements for the year ended 31 August 2019: Property, plant and equipment Items of property, plant and equipment are initially recognised at cost. Costs include all costs incurred to bring the asset to the condition necessary for it to be capable of operating in the manner intended by management Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses, except for land and buildings which are stated at revalued amounts, The revalued amount is the fair value at the date of the revaluation less any subsequent accumulated depreciation and impairment lowes. Revaluations are made with sufficient regularity such that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting year. The revaluation reserve related to land and buildings is transferred directly to retained income when the asset is derecognised, Depreciation is charged so as to allocate the depreciable amounts of assets over their estimated useful lives. The following annual rates are used for the depreciation of property, plant and equipment: Buildings Vehicles 6 years Machinery 10 years 40 years No changes to the accounting policy took place in the 2020 financial year. Mr. Bass has provided you with the following incomplete fixed asset register prepared by the bookkeeper, Ms. Blair, to assist with the preparation of the financial statements Note Asset name Asset class of Cost Asset No. Date purchase Residual value impair ment Useful Deprecia- life tion (correctly calculated) 6 years 31 667 210 1 300 000 15 000 0 150 45 2 3 Delivery Van Vehicles 01/01/2020 HG 32 LCGP Fly machine Machinery 01/03/2020 Land and Land and 01/09/2015 head office buildings premises (ERF 352) 20 000 1 000 000 ? ? ? 0 15 000 000 2 Notes 1. On 1 January 2020 Bass Industries disposed of a delivery vehicle to a local car dealership (Dan's Vans). The bookkeeper, Ms. Blair, removed this vehicle from the fixed asset register and as a result it does not appear in the fixed asset register above. At 1 January 2020 the accumulated depreciation, correctly calculated, related to the vehicle disposed of was R280 000. The accumulated depreciation was R256 667 related to this vehicle at 31 August 2019. The vehicle was originally purchased on 1 January 2016 and had a nil residual value. The vehicle was disposed of at a trade in value of R156 000. A new vehicle (vehicle 210) was purchased from Dan's Vans on 1 January 2020 and was ready for use on the same date. Bass Industries started to use the vehicle for deliveries on 1 March 2020 after staff had attended training courses amounting to R28 000 reminding them of how to drive an automatic vehicle. 2. Bass Industries purchased a machine to make fishing files from their supplier, Anglers Delight, on 1 March 2020. The purchase price of the machine was R2 000 000. The machine was delivered to Bass Industries premises on 20 March 2020 and was installed on the same date. The costs of delivery and installation amounted to R47 000. Before the machine could be brought into use to produce files for resale, the machine had to be tested. The cost of testing the machine amounted to R68 500. As part of the testing phase, 100 flies were produced. These files were sold at RA.50 each to a local fishing school, Mrs. Simpson's Fishing School, after packaging costs of R0.70 each were incurred. The machine was ready for use on 1 April 2020. During April 2020 the machine became blocked with the thread used to produce the flies. Costs of R98 000 were incurred to repair the machine. The machine was running at expected capacity from 30 April 2020. On 31 August 2020 it came to Mr. Bass's attention that there was a new lly machine on the market that could produce flies twice as fast as the existing machine. At 31 August 2020 the existing fly machine could be sold for R1 560 000 after marketing costs of R30 000 were incurred. If the machine was not sold, the cashflows expected from the use of the machine for the next 9 years is R220 000 per year. An applicable market related interest rate is 8% per annum. JULAIT Upplaule market related interest rate is 8% per annum. 3. Bass Industries purchased land and buildings (ERF352) as premises from which to operate on inception of the company. 60% of the cost of the premises relates to the land. The building consists of 3 floors. Floors 1 and 2 house machines and is used to produce the fishing flies. Floor 3 is used for administrative purposes. This is where the accounting staff of Bass Industries operate from. This purchase was financed by the issue of 15 000 5% debentures at a par value of R1 000 each on 1 September 2015. The debentures are redeemable at a 10% premium on 31 August 2022. Payments on the debentures are made annually in arrears. The land and buildings were revalued for the first time on 31 August 2020. The fair values of the land and buildings were R10 000 000 and R7 480 000 respectively. Marks Mir 7.5 a. un b. 31 47. Prepare the asset disposal ledger account in relation to the disposal of the vehicle on 1 January 2020, referred to in Note 1. Prepare the PPE reconciliation note required per IAS 16 par 73e that would appear in the notes to the financial statements of Bass Industries (Pty) Ltd for the year ended 31 August 2020. Discuss, with reference to the principles of IAS 1, how and at what amount the debentures should be classified and presented in the statement of financial position. You may assume that the definition and recognition criteria of a liability as per the Conceptual Framework has been met. Include all relevant calculations. C. 12 18 12 18 The financial statements for the 2019 financial year have been prepared and have been audited as correct. The following extract of the accounting policy note appeared in the financial statements for the year ended 31 August 2019: Property, plant and equipment Items of property, plant and equipment are initially recognised at cost. Costs include all costs incurred to bring the asset to the condition necessary for it to be capable of operating in the manner intended by management Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses, except for land and buildings which are stated at revalued amounts, The revalued amount is the fair value at the date of the revaluation less any subsequent accumulated depreciation and impairment lowes. Revaluations are made with sufficient regularity such that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting year. The revaluation reserve related to land and buildings is transferred directly to retained income when the asset is derecognised, Depreciation is charged so as to allocate the depreciable amounts of assets over their estimated useful lives. The following annual rates are used for the depreciation of property, plant and equipment: Buildings Vehicles 6 years Machinery 10 years 40 years No changes to the accounting policy took place in the 2020 financial year. Mr. Bass has provided you with the following incomplete fixed asset register prepared by the bookkeeper, Ms. Blair, to assist with the preparation of the financial statements Note Asset name Asset class of Cost Asset No. Date purchase Residual value impair ment Useful Deprecia- life tion (correctly calculated) 6 years 31 667 210 1 300 000 15 000 0 150 45 2 3 Delivery Van Vehicles 01/01/2020 HG 32 LCGP Fly machine Machinery 01/03/2020 Land and Land and 01/09/2015 head office buildings premises (ERF 352) 20 000 1 000 000 ? ? ? 0 15 000 000 2 Notes 1. On 1 January 2020 Bass Industries disposed of a delivery vehicle to a local car dealership (Dan's Vans). The bookkeeper, Ms. Blair, removed this vehicle from the fixed asset register and as a result it does not appear in the fixed asset register above. At 1 January 2020 the accumulated depreciation, correctly calculated, related to the vehicle disposed of was R280 000. The accumulated depreciation was R256 667 related to this vehicle at 31 August 2019. The vehicle was originally purchased on 1 January 2016 and had a nil residual value. The vehicle was disposed of at a trade in value of R156 000. A new vehicle (vehicle 210) was purchased from Dan's Vans on 1 January 2020 and was ready for use on the same date. Bass Industries started to use the vehicle for deliveries on 1 March 2020 after staff had attended training courses amounting to R28 000 reminding them of how to drive an automatic vehicle. 2. Bass Industries purchased a machine to make fishing files from their supplier, Anglers Delight, on 1 March 2020. The purchase price of the machine was R2 000 000. The machine was delivered to Bass Industries premises on 20 March 2020 and was installed on the same date. The costs of delivery and installation amounted to R47 000. Before the machine could be brought into use to produce files for resale, the machine had to be tested. The cost of testing the machine amounted to R68 500. As part of the testing phase, 100 flies were produced. These files were sold at RA.50 each to a local fishing school, Mrs. Simpson's Fishing School, after packaging costs of R0.70 each were incurred. The machine was ready for use on 1 April 2020. During April 2020 the machine became blocked with the thread used to produce the flies. Costs of R98 000 were incurred to repair the machine. The machine was running at expected capacity from 30 April 2020. On 31 August 2020 it came to Mr. Bass's attention that there was a new lly machine on the market that could produce flies twice as fast as the existing machine. At 31 August 2020 the existing fly machine could be sold for R1 560 000 after marketing costs of R30 000 were incurred. If the machine was not sold, the cashflows expected from the use of the machine for the next 9 years is R220 000 per year. An applicable market related interest rate is 8% per annum. JULAIT Upplaule market related interest rate is 8% per annum. 3. Bass Industries purchased land and buildings (ERF352) as premises from which to operate on inception of the company. 60% of the cost of the premises relates to the land. The building consists of 3 floors. Floors 1 and 2 house machines and is used to produce the fishing flies. Floor 3 is used for administrative purposes. This is where the accounting staff of Bass Industries operate from. This purchase was financed by the issue of 15 000 5% debentures at a par value of R1 000 each on 1 September 2015. The debentures are redeemable at a 10% premium on 31 August 2022. Payments on the debentures are made annually in arrears. The land and buildings were revalued for the first time on 31 August 2020. The fair values of the land and buildings were R10 000 000 and R7 480 000 respectively. Marks Mir 7.5 a. un b. 31 47. Prepare the asset disposal ledger account in relation to the disposal of the vehicle on 1 January 2020, referred to in Note 1. Prepare the PPE reconciliation note required per IAS 16 par 73e that would appear in the notes to the financial statements of Bass Industries (Pty) Ltd for the year ended 31 August 2020. Discuss, with reference to the principles of IAS 1, how and at what amount the debentures should be classified and presented in the statement of financial position. You may assume that the definition and recognition criteria of a liability as per the Conceptual Framework has been met. Include all relevant calculations. C. 12 18 12 18