Timely Limited has plant that cost R300 000 (excluding vat) on 01 January 2019. Installation and modification costs R60 000 (excluding vat). Transport costs for bringing the asset to location amounted to R20 000. Initial operating losses amounted to R50 000. The plant was ready for use on 01 January 2019. The machines were cleaned on 01 March 2019 at a cost of R10 000. Due to the low order levels in April 2019 the plant stood idle. Depreciation is provided over its useful life of 5 years using the straight-line method to a nil residual value. Timely Limited measures plant under the revaluation model. The plant was revalued as follows: 31 December 2019 R310 000 31 December 2020 R300 000 Timely Limited transfers the maximum amount from the realised portion of the revaluation surplus to equity.

Required: Provide the journal entries for the above information for years ending 2019 and 2020. 

Answer rating: 100% (QA)

The journal entry is given in the following table Timely limited Date Particulars Debit R Credit R 1 ... View the full answer