FAC3702 AUGUST 2025 EXAMINATION ANSWERS
QUESTION 1
Required 1a: Property, Plant and Equipment Note
Mahlangu Transport Company Ltd
Notes to the Annual Financial Statements
For the year ended 30 June 2025
Property, Plant and Equipment
Land R Buildings Vehicles Total R
Carrying amount at 1 July
3500000 7342857 3400000 14242857
2024
Cost or Valuation 3500000 9000000 5600000 18100000
Accumulated depreciation 0 -1657143 -2200000 -3857143
Additions - - - -
Revaluation surplus 200000 - - 200000
Depreciation - -257143 -850000 -1107143
Impairment loss - - -1350000 -1350000
Carrying amount at 30 June
3700000 7085714 1200000 11985714
2025
Cost or valuation 3700000 9000000 4250000 16950000
, Accumulated depreciation
- -1914286 -3050000 -4964286
and impairment
Workings:
Land (Soweto):
Revalued to fair value R3,700,000 on 30 June 2025
Land (Midrand) transferred to Investment Property
Buildings:
Soweto: R9,000,000 cost, depreciation R200,000 p.a. (R9,000,000-R2,000,000)/35 years
Midrand: R5,000,000 cost, depreciation R160,714 p.a. (R5,000,000-R500,000)/28 years
Total annual depreciation: R360,714, but Midrand transferred to IP from 1 Feb 2025
Midrand depreciation for 7 months (Jul 2024-Jan 2025): R93,750
Total buildings depreciation: R200,000 + R93,750 = R293,750
Motor Vehicles:
5 vehicles × R850,000 = R4,250,000 cost
Depreciation based on km: (R850,000-R120,000)/510,000 km = R1.43 per km
Total km driven by 30 June 2025: 180,000 km per vehicle
Depreciation per vehicle: 180,000 × R1.43 = R257,400
Total accumulated depreciation: 5 × R257,400 = R1,287,000
Vehicles transferred to held for sale on 30 April 2025
Required 1b: Investment Property Note
QUESTION 1
Required 1a: Property, Plant and Equipment Note
Mahlangu Transport Company Ltd
Notes to the Annual Financial Statements
For the year ended 30 June 2025
Property, Plant and Equipment
Land R Buildings Vehicles Total R
Carrying amount at 1 July
3500000 7342857 3400000 14242857
2024
Cost or Valuation 3500000 9000000 5600000 18100000
Accumulated depreciation 0 -1657143 -2200000 -3857143
Additions - - - -
Revaluation surplus 200000 - - 200000
Depreciation - -257143 -850000 -1107143
Impairment loss - - -1350000 -1350000
Carrying amount at 30 June
3700000 7085714 1200000 11985714
2025
Cost or valuation 3700000 9000000 4250000 16950000
, Accumulated depreciation
- -1914286 -3050000 -4964286
and impairment
Workings:
Land (Soweto):
Revalued to fair value R3,700,000 on 30 June 2025
Land (Midrand) transferred to Investment Property
Buildings:
Soweto: R9,000,000 cost, depreciation R200,000 p.a. (R9,000,000-R2,000,000)/35 years
Midrand: R5,000,000 cost, depreciation R160,714 p.a. (R5,000,000-R500,000)/28 years
Total annual depreciation: R360,714, but Midrand transferred to IP from 1 Feb 2025
Midrand depreciation for 7 months (Jul 2024-Jan 2025): R93,750
Total buildings depreciation: R200,000 + R93,750 = R293,750
Motor Vehicles:
5 vehicles × R850,000 = R4,250,000 cost
Depreciation based on km: (R850,000-R120,000)/510,000 km = R1.43 per km
Total km driven by 30 June 2025: 180,000 km per vehicle
Depreciation per vehicle: 180,000 × R1.43 = R257,400
Total accumulated depreciation: 5 × R257,400 = R1,287,000
Vehicles transferred to held for sale on 30 April 2025
Required 1b: Investment Property Note
