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    PPE Disclosure 2023

    Uploaded by

    Liwena Delin
    Namibia Luxury Traders financial statements for the year ended 28 February 2012 are prepared. The statement of financial position shows non-current assets of N$225,000 consisting of furniture and delivery vehicles. Current assets are N$207,400 consisting of inventories, receivables and petty cash less bank overdraft. Equity is N$105,000 and liabilities are N$327,400 consisting of current liabilities of N$54,000 and non-current liabilities of N$80,000 bank loan. The income statement shows a net profit of N$12,600. Notes disclose depreciation methods and balances for property, plant, and equipment and inventory valuation methods. Ne

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    PPE Disclosure 2023

    Uploaded by

    Liwena Delin
    46 views2 pages
    Namibia Luxury Traders financial statements for the year ended 28 February 2012 are prepared. The statement of financial position shows non-current assets of N$225,000 consisting of furniture and delivery vehicles. Current assets are N$207,400 consisting of inventories, receivables and petty cash less bank overdraft. Equity is N$105,000 and liabilities are N$327,400 consisting of current liabilities of N$54,000 and non-current liabilities of N$80,000 bank loan. The income statement shows a net profit of N$12,600. Notes disclose depreciation methods and balances for property, plant, and equipment and inventory valuation methods. Ne

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    Namibia Luxury Traders financial statements for the year ended 28 February 2012 are prepared. The statement of financial position shows non-current assets of N$225,000 consisting of furniture and delivery vehicles. Current assets are N$207,400 consisting of inventories, receivables and petty cash less bank overdraft. Equity is N$105,000 and liabilities are N$327,400 consisting of current liabilities of N$54,000 and non-current liabilities of N$80,000 bank loan. The income statement shows a net profit of N$12,600. Notes disclose depreciation methods and balances for property, plant, and equipment and inventory valuation methods. Ne

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    46 views2 pages

    PPE Disclosure 2023

    Uploaded by

    Liwena Delin
    Namibia Luxury Traders financial statements for the year ended 28 February 2012 are prepared. The statement of financial position shows non-current assets of N$225,000 consisting of furniture and delivery vehicles. Current assets are N$207,400 consisting of inventories, receivables and petty cash less bank overdraft. Equity is N$105,000 and liabilities are N$327,400 consisting of current liabilities of N$54,000 and non-current liabilities of N$80,000 bank loan. The income statement shows a net profit of N$12,600. Notes disclose depreciation methods and balances for property, plant, and equipment and inventory valuation methods. Ne

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Question 1

    You are recently appointed as accountant of Namibia Luxury Traders. The following list of balances and
    additional information is presented to you:

    List of balances as at 28 February 2012 N$


    Capital 105 000
    Drawings 15 000
    Furniture 50 000
    Delivery vehicles 140 000
    Accumulated depreciation: Furniture 10 000
    Accumulated depreciation: Delivery vehicles 65 000
    15% Bank Loan 80 000
    Receivables 105 000
    Payables 27 000
    Inventories 25 000
    Bank overdraft 52 400
    Petty cash 250
    Sales 321 000
    Purchases 228 000
    Returns inwards 8 000
    Return outwards 4 000
    Freight on purchases 1 000
    Freight on sales 2 000
    Advertising expenses 15 000
    Bank charges 650
    Salaries 34 000
    Interest on loan 5 400
    Rent expense 24 800
    Stationery 2 300
    Water and electricity 8 000

    Additional information:

    1. The inventories amounted to N$ 55 000 on 28 February 2012. Inventories are measured at the lower
    of cost, on the FIFO method, and net realisable value.

    2. On 01 July 2011 a delivery vehicle with a purchase price of N$ 30 000 and with a carrying amount
    of N$ 18 000 on 28 February 2011 was traded in on a new vehicle with a purchase price of
    N$ 54 000. The previous accountant made only the following entry:

    Dr Delivery vehicles 42 750


    Cr bank 42 750
    3. Depreciation is written off as follows:
    Furniture 15% per annum on cost

    Delivery vehicles 20% per annum on the diminishing balance


    4. The rent contract was concluded on 01 August 2011 at a monthly rent of N$ 3 100.
    5. On 28 February 2012 stationery on hand amounted to N$ 400
    6. Water and electricity for February 2012 amounted to N$ 900. The account was only received on 05
    March 2012 and is not recognised yet.
    7. The loan was received on 01 September 2011, the interest rate is 15% per year and the loan is
    repayable in equal annual instalments of N$ 20 000 (payment period of 4 (four) years) from 31
    August 2012.

    Required:

    1) Prepare the financial statements for Namibia Luxury Traders for the year ended 28 February 2012.
    The presentation and disclosure of the financial statements must comply with the requirements of
    Companies Act 71 of 2008 International Financial Reporting Standards (IFRS).
    Comparative figures are required.
    2) Prepare the notes for:
    2.1 Property, Plant and Equipment
    2.2 Inventory

    Question 2
    Neath Limited provides the following information in respect of the company’s non-current assets:
    1. On 1 January 2012 the carrying amount of machinery was N$ 76 800.
    2. On 31 March 2012 the above machinery was traded in for a more modern machinery costing
    N$ 200 000.
    3. N$ 75 000 was received for the old machinery and the balance of the purchase price was settled in
    cash.
    4. The machinery traded in was originally purchased on 1 January 2009.
    5. Depreciation is written off using the diminishing balance method at 20% per annum.
    6. On 1 January 2012 the value of land and building was N$ 1 002 000. No deprecation is provided for
    land, building is depreciated at 2% per annum using straight-line method.
    7. Land was purchased on 1 March 2008 at a cost of N$ 450 000 and the accumulated depreciation for
    buildings was N$ 48 000 as at 1 January 2012.
    8. On 2 March 2012 new equipment worth N$ 150 000 was purchased. Depreciation on equipment
    will be accounted for using straight-line method at 15% per annum.
    9. The financial year end is 31 December each year.

    Required: Marks
    Prepare an extract of the statement of financial position for Neath Ltd as at 31 December 2012
    and show how the non-current assets will be disclosed with necessary notes to comply with
    minimum requirements of companies Act 71 of 2008 and International financial reporting
    standards (IFRSs). Comparative figures are required.
    20

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