Accounting 2a Semester Test 2 2023 MEMO

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AO2-ACC2A-2023- Solution (002) Final


Accounting 1A (University of Johannesburg)




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COURSE: ACCOUNTANCY IIA
ASS2-2023
QUESTION 1 (SUGGESTED SOLUTION)
PART A
a) General Journal of Sweet things Ltd

30 November Dr Depreciation 7 603
2021
Cr Accumulated depreciation 7 603

Dr Impairment loss 8 347
Cr Accumulated impairment loss 8 347

Dr Accumulated depreciation 25 849P
Dr Accumulated impairment loss 8 347P
Dr Non-current assets held for sale 294 500P
Cr Machine 328 696


Calculations
Cost (378 000 x 100/115)  328 696
Depreciation 2021 (328 696 – 55 000)/15 (18 246)
CA 30 June 2021 310 450
Depreciation 2022 (328 696 – 55 000/15 x 5/12) (7 603)
CA 30 November 2021 302 847P
Fair value less costs to sell (300 000- 5 500) 294 500
Impairment loss (302 847- 294 500) 8 347p
13 max (11)
b)
Sweet Things Ltd
Statement of financial position as at 30 June 2022

Current assets
Non-current assets held for sale 294 500p
(2)


PART B
a. Impairment loss calculation

Cost: 1 609 210 x  1 399 313

1 July 2019 - 31 Dec 2019 (1 399 313x 10% x ) 69 966p

1 Jan 2019 – 31 Dec 2020 (1 399 313 – 69 966p) x 10% 132 935

1 Jan 2020 – 31 Dec 2021 (1 399 313– 69 966 – 132 935p) x 10% 119 641

1 Jan 2021– 31 Dec 2022 (1 399 313– 69 966 – 132 935–119 641p) x 10% 107 677

Accumulated depreciation 430 219p



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