FAC1502 ASSESSMENT 03 SEMESTER 01 202 The following information relates to KATLISO: Balances as at 31 August 20.3: Plant and machinery (at cost) Accumulated depreciation: plant and machinery R 85 000 R 46 600 Additional information (a)

FAC1502 ASSESSMENT 03 SEMESTER 01 202 The following information relates to KATLISO: Balances as at 31 August 20.3: Plant and machinery (at cost) Accumulated depreciation: plant and machinery R 85 000 R 46 600 Additional information (a) According to the assets register, plant and machinery consist of two Faset machines of equal value. Both the machines were purchased by obtaining a loan from Capital Bank and they were charged 15 % interest per annum and installed on the same date. (b) Depreciation is written off at 20% per annum by the diminishing balance method. (c) On 31 January 20.4, management decided to increase production capacity and purchased a KK machine on credit from Baker Ltd for R90 000. One of the Faset machines was traded in, reducing the amount owing to Baker Ltd to R70 500. (d) On 1 February 20.4, installation charges on the new machine amounting to R6 000 were paid in cash.