QUESTION $1(25$ marks$)$ John is the owner of a local gardening service company called Green Gardens $($Pty$)$ Ltd $($Green Gardens$).$ Green Gardens has a $30$ June financial year$-$end. You have been presented with the pre$-$adjustment trial balance of Green Gardens $($Pty$)$ Ltd as at $30$ June $2024$: Account Note Debit $($R$)$ Credit $($R$)$ Lawnmowers cost $(1$ July $2023)1,23500$ Lawnmowers$-$ accumulated depreciation $(1$ July $2023)1,23000$ Vehicles $-$ cost $(1$ July $2023)3450000$ Vehicles $-$ accumulated depreciation $(1$ July $2023)3??=$ To be calculated. During the year ended $30$ June $2024,$ the following transactions took place that have not yet been accounted for: Note $1$: New lawnmowers: $1$ February $2024$: Green Gardens placed an order for $3$ new lawnmowers from Breez Ltd$,$ a foreign supplier situated in Germany. The price of the new lawnmowers was R$5000$ each. $15$ February $2024$: The lawnmowers were shipped free on board $($FOB$)$ shipping point and Green Gardens paid the outstanding balance to Breez Ltd on the same day. $1$ March $2024$: The shipment arrived at the Durban harbour. $1$ March $2024$: An additional R$500$ was paid in cash for the delivery of the new lawnmowers to Green Gardens premises. $1$ March $2024$: The lawnmowers came in $2$ parts, namely the engine and the body. Green Gardens needed to hire a technician to assemble the parts of the lawnmowers. The technician charged Green Gardens total of R$600$ for all three of the lawnmowers assembly. With this technician, Green Gardens has an arrangement to pay all invoices at the end of each month. On $1$ March $2024,$ the new lawnmowers were ready for use. Note $2$: Old lawnmower: On $1$ May $2023,$ Green Gardens sold their old lawnmower at a loss of R$600.$ This original lawnmower was purchased on $1$ July $2019$ when the business was started. Note $3$: Vehicles: Green Gardens owns one vehicle that they bought when they started the business on $1$ July $2019.31$ July $2023$: Green Gardens serviced the vehicle at a cost of R$2000.30$ June $2024$: Green Gardens sold the vehicle for R$250000.$ On this day, the company also bought a new vehicle for R$500000.$ The new vehicle has a useful life of $7$ years with a residual value of R$150000.$ Old vehicle New vehicle Date of purchase $1$ July $201931$ December $2023$ Purchase price R$450000$ R$500000$ Useful life $6$ years $7$ years Residual value R$200000$ R$150000$ Depreciation method Straight line Straight line Note $4$: Land: On $31$ October $2023,$ Green Gardens purchased a piece of land for R$800000,$ with the intention of building an office. Additional information: All lawnmowers, old and new, have a useful life of $5$ years, with no residual value and are depreciated on the straight$-$line method. Green Gardens pays cash for all transactions unless otherwise stated.

REQUIRED:

$1\mathrm{.}1$ With reference to Note $1$: New lawnmowers, calculate the cost price of the new lawnmowers. $(3$ marks$)$

$1\mathrm{.}2$ With reference to Note $3$: Vehicles, calculate the profit or loss on the sale of the vehicle for the year ended $30$ June $2024.$ Show all workings and reference accordingly. Round off to the nearest Rand. $(6$ marks$)$

$1\mathrm{.}3$ Prepare the general ledger account for Accumulated depreciation $-$ Lawnmowers for the financial year ended $30$ June $2024$ of Green Gardens $($Pty$)$ Ltd$.$ Close off the account at the financial year$-$end. Ignore dates. Show all workings, and reference accordingly. Ignore VAT. Round off to the nearest Rand. $(10$ marks$)1\mathrm{.}4$ Prepare an extract of the Statement of Financial Position of Green Gardens $($Pty$)$ Ltd as at $30$ June $2024,$ showing only the non$-$current assets. Totals are not required. Notes to the financial statement are not required. $(6$ marks$)---$ End of Question $1---$

QUESTION $2(20$ marks$)$ C Bridal $($Pty$)$ Ltd $($C Bridal$)$ is a company that makes unique wedding dresses. C Bridal has a $31$ December financial year$-$end. C Bridal makes use of a perpetual inventory system. C Bridal and Sew Elegance have the following arrangement: C Bridal makes use of a perpetual inventory system. C Bridal makes credit purchases of lace material from Sew Elegance C Bridal pays for credit purchases of a particular month on the first Friday of the following month. Example, credit purchases for the month of October $2024$ will be paid on $3$ November $2024.$ Sew Elegances will give a $10\%$ settlement discount on the outstanding amount if C Bridal pay within $15$ days of purchase. During the month of November $2024,$ the following transactions took place that have not been recorded yet: $1.$On the $1$st of November $2024,$ C Bridal still owed Sew Elegance R$7500.$ They paid the outstanding amount on the $2$nd of November $2024.2.$On the $5$th of November $2024,$ C Bridal purchased a large order of material of R$12000$ from Sew Elegance. $3.$On the $10$th of November $2024,$ C Bridal paid Sew Elegance for the material purchased on the $5$th of November $2024.4.$On the $20$th of November $2024,$ C Bridal made another purchase of R$6500.$ C Bridal received a $5\%$ trade discount on the purchase. $5.$Some of the material purchased on the $20$th of November $2024$ was damaged and C Bridal returned material worth R$750$ on the $25$th of November $2024.$ On $1$ December $2024$ Sew Elegance sent C Bridal a debtors statement as of $30$ November $2024.$ The balance on this statement was R$8325.$ When C Bridal compared the statement with the Sew Elegance general ledger account in their accounting records at the same date, the following discrepancies were found: $1.$The return of products on the $25$th of November was not reflected on the statement. $2.$An invoice to the value of R$1500,$ to C Brooks, has been incorrectly reflected on the statement. $3.$The trade discount received on the purchase made on the $20$th of November $2024$ was omitted from the statement.

REQUIRED:

$2\mathrm{.}1$ Prepare the Sew Elegance $($Pty$)$ Ltd trade payables general ledger account for the month of November $2024$ in the accounting records of C Bridal $($Pty$)$ Ltd$.$ No dates are required. Close off the account at the month$-$end. $(10$ marks$)$

$2\mathrm{.}2$ Describe what a remittance advice is and why it is important to send one to a supplier. $(3$ marks$)$

$2\mathrm{.}3$ Prepare a remittance advice that C Bridal $($Pty$)$ Ltd will send to Sew Elegance $($Pty$)$ Ltd with the payment made on the $15$th of December $2024.(7$ marks$)---$ End of Question $2---$

QUESTION $3(30$ marks$)$ Bees Books $($Pty$)$ Ltd $($Bees Books$)$ is a bookstore in Cape Town with a $30$ November financial year$-$end. Bees Books make use of the perpetual inventory system. Bees Books is a registered VAT vendor. Account Debit $($R$)$ Credit $($R$)$ Trade debtors $145000$ Bank $/($overdraft$)4500$ Inventory $755200$ Trade payables $226560$ VAT payable $12500$ The following transactions have not yet been recorded for the financial year ended $30$ November $2024$: $1.$Bees Books sold $100$ books on credit in October $2024$ with an invoiced amount of R$36000($including VAT$).$ The cost price of these books sold was R$15000($excluding VAT$).2\mathrm{.}15$ of the books sold in October had water damage and the customers returned these books within one week of purchase. $3.$At the end of October $2024,$ Bees Books received R$28000$ cash from outstanding debtors. $4.$In November $2024,$ Bees Books sold $250$ books on credit with a total selling price of R$62500($excluding VAT$)$ and a cost price of R$150($excluding VAT$)$ per book. Bees Books wanted to encourage debtors to pay the amount owing and offered a settlement discount of $10\%$ if they pay within $10$ days of purchase. Bees Books believes that all customers who bought books in November $2024$ will make use of the discount. $5.$Within $10$ days of purchase all the customers who bought the $250$ books during November $2024$ made use of the settlement discount. $6.$On $20$th of November $2024$ Bees Books received an email from a lawyer stating that E Brooks, a debtor with an outstanding balance of R$3000,$ is insolvent and that a settlement of $20$ cents in the Rand would be paid on the $15$th of November $2024.$ The remaining balance should be written off as irrecoverable. $7.$Management of Bees Books estimated that $5\%$ of the outstanding trade receivable balance on $30$ November $2024$ would be irrecoverable. There was no allowance for doubtful debt for the year ending $30$ November $2023.$

REQUIRED: Prepare the general journal entries for all the transactions that occurred during the $2024$ financial year in the accounting records of Bees Books $($Pty$)$ Ltd$.$ Journal dates and narrations are not required. Show all calculations and references accordingly. Round off to the nearest Rand where applicable. $(30$ marks$)---$ End of Question $3---$

QUESTION $4(25$ marks$)$ Walker $($Pty$)$ Ltd $($Walker$)$ is a company that manufactures kitchen cupboards. Walker has a $30$ June financial year$-$end. Account Note Debit $($R$)$ Credit $($R$)$ Share capital $2000000$ Land $(1$ July $2023)18500000$ Retained income $(1$ July $2023)1350700$ Machinery cost $(1$ July $2023)21800000$ Machinery $-$ accumulated depreciation $(1$ July $2023)2337500$ Equipment $-$ cost $(1$ July $2023)3950000$ Equipment $-$ accumulated depreciation $(1$ July $2023)3285000$ Bank $125000$ The following transactions took place during the current financial year and have not yet been recorded: Note $1$: Land: On $1$ January $2024,$ Walker received the valuation report from the bank, stating that the land is worth R$9250000.$ The land was purchased on $1$ January $2022.$ Note $2$: Machinery: Machinery consists of $1$ machine that is used to cut the material in the shape that is required. This machine consists of $2$ components, namely mechanical and control. The mechanical component contributes to $75\%$ of the total cost of the machinery and the balance of $25\%$ of the total cost is attributable to the control component. The mechanical component has a useful life of $10$ years, and the control component only has a useful life of $5$ years and are depreciated on the straight$-$line method. The machine was purchased and ready for use on the $1$st of January $2022.$ Components: Mechanical Control Component contribution: $75\%25\%$ Useful life: $10$ years $5$ years Purchase date: $1$ January $20221$ January $2022$ On the $1$st of May $2024$ the control component of the machine broke and needed to be replaced. The component was relaced immediately at a cost of R$550000.$ The component was ready for use on the $1$st of May $2024.$ Walker paid the supplier at the end of the month as agreed. The new control component has a useful life of $6$ years and is depreciated on the straight$-$line method. Note $3$: Equipment: Equipment consists of $20$ drills. All the drills have been purchased on the $1$st of January