FAC3703 ASSIGNMENT 1 OF 2021
(a) Notes to the Financial Statements of Performance Ltd for the year ended 28
February 2021
1. Profit before tax
Profit before tax includes the following items:
R
Incomes
Profit on sale of equipment 3 250 000
Finance income (𝑖𝑖) (831 984 + 238 811) 1 070 795
Expenses
Depreciation (𝑖) 833 333
2. Property, plant & equipment
R
Carrying amount at beginning of year 9 583 333
Cost 15 000 000
Accumulated (𝑖) (5 416 667)
Depreciation for the year (𝑖) 833 333
Disposals during year (𝑖) (8 750 000)
Carrying amount at end of year -
Cost -
Carrying amount -
3. Net investment in lease
3.1. Reconciliation of net investment in finance leases
R
Opening balance -
New leases entered into 12 010 000
Repayments of capital (1 668 016)
Finance income earned 238 811
Closing balance 10 580 795
(a) Notes to the Financial Statements of Performance Ltd for the year ended 28
February 2021
1. Profit before tax
Profit before tax includes the following items:
R
Incomes
Profit on sale of equipment 3 250 000
Finance income (𝑖𝑖) (831 984 + 238 811) 1 070 795
Expenses
Depreciation (𝑖) 833 333
2. Property, plant & equipment
R
Carrying amount at beginning of year 9 583 333
Cost 15 000 000
Accumulated (𝑖) (5 416 667)
Depreciation for the year (𝑖) 833 333
Disposals during year (𝑖) (8 750 000)
Carrying amount at end of year -
Cost -
Carrying amount -
3. Net investment in lease
3.1. Reconciliation of net investment in finance leases
R
Opening balance -
New leases entered into 12 010 000
Repayments of capital (1 668 016)
Finance income earned 238 811
Closing balance 10 580 795
