FAC3702 ASSIGNMENT 1 OF 2021
(a) General Journal
DR CR
R R
Derecognition of faulty compressor
14 000 13 1 011
Accumulated depreciation (SFP) ( 15 ∗ 12)
12 989
Derecognition of compressor (P / L) (14 000 − 1 011)
14 000
Walk – in Fridge (SFP)
Subsequent replacement of faulty compressor
Walk – in Fridge (SFP) 15 000
Bank (SFP) 15 000
(b) Notes to the Financial Statements of Pizazza Ltd for the year ended 30 June
2020
1. Profit before tax
Profit before tax includes the following:
R
Incomes
Rental income (15 000 ∗ 3) 45 000
Fair value adjustment – Investment Property (5 140 000 − 5 000 000) 140 000
Expenses
Depreciation (39 541 + 6 453) 45 994
Direct operating expenses – Investment property (8 500 ∗ 4) 34 000
Derecognition of compressor 12 989
2. Property, plant & equipment
(a) General Journal
DR CR
R R
Derecognition of faulty compressor
14 000 13 1 011
Accumulated depreciation (SFP) ( 15 ∗ 12)
12 989
Derecognition of compressor (P / L) (14 000 − 1 011)
14 000
Walk – in Fridge (SFP)
Subsequent replacement of faulty compressor
Walk – in Fridge (SFP) 15 000
Bank (SFP) 15 000
(b) Notes to the Financial Statements of Pizazza Ltd for the year ended 30 June
2020
1. Profit before tax
Profit before tax includes the following:
R
Incomes
Rental income (15 000 ∗ 3) 45 000
Fair value adjustment – Investment Property (5 140 000 − 5 000 000) 140 000
Expenses
Depreciation (39 541 + 6 453) 45 994
Direct operating expenses – Investment property (8 500 ∗ 4) 34 000
Derecognition of compressor 12 989
2. Property, plant & equipment
