Abantwana Ltd is a company that manufactures and distributes clothing for children between the ages of...

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Abantwana Ltd is a company that manufactures and distributes clothing for children between the ages of 1 and 7 years. The company has a 30 September year-end. The Company is a registered VAT vendor and so are all entities trading with it. VAT is charged at 15%. Land and buildings 1.1) Abantwana Ltd is in the process of buying a large property to house all their administrative activities. Abantwana Ltd purchased a property in Polokwane for this reason. The property was acquired on 31 March 2019 at a cost of R 1 437 500 (including VAT). The cost of the land is 25% of the total cost of the property, excluding VAT. Transfer fees was paid on 31 March 2019 and amounted to R 28 750 including VAT. The staff of Abantwana Ltd could only move into the building on 30 April 2019, as the previous owner was still in the process of removing all their furniture from the building. NO REQUIRED A B Calculate the cost of the building that was purchased in Note 1.1 Calculate the carrying amount and accumulated depreciation for the building that was purchased in Note 1.1 until the beginning of the 2022 financial year. Prepare the journal entry to recognise the new block of the building in the accounting records of Abantwana (Ltd). Refer to Note 1.2 Show ALL your calculations Journal entries must be dated 2022 [3] [7.5] [8] Abantwana Ltd is a company that manufactures and distributes clothing for children between the ages of 1 and 7 years. The company has a 30 September year-end. The Company is a registered VAT vendor and so are all entities trading with it. VAT is charged at 15%. Land and buildings 1.1) Abantwana Ltd is in the process of buying a large property to house all their administrative activities. Abantwana Ltd purchased a property in Polokwane for this reason. The property was acquired on 31 March 2019 at a cost of R 1 437 500 (including VAT). The cost of the land is 25% of the total cost of the property, excluding VAT. Transfer fees was paid on 31 March 2019 and amounted to R 28 750 including VAT. The staff of Abantwana Ltd could only move into the building on 30 April 2019, as the previous owner was still in the process of removing all their furniture from the building. NO REQUIRED A B Calculate the cost of the building that was purchased in Note 1.1 Calculate the carrying amount and accumulated depreciation for the building that was purchased in Note 1.1 until the beginning of the 2022 financial year. Prepare the journal entry to recognise the new block of the building in the accounting records of Abantwana (Ltd). Refer to Note 1.2 Show ALL your calculations Journal entries must be dated 2022 [3] [7.5] [8]

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