Question: QUESTION 4 ( 1 2 Mark On 1 . Januany 2 0 2 3 , the government awarded Kim Traders Lid a grant of Raso

QUESTION

4

(12

Mark

1 .

Januany

2023,

the government awarded Kim Traders Lid a grant of Raso

000

to assist with the acquisition of a factory. The factory was purchased on

1

March

2023

for R

900 000

and was inmediatily available for use. It has an estimated useful life of

10

years and no residual value. The grart was awarded due to compliance with specific conditions fiklod in the prior yey. As of the diff of receict, at constions had been met, except for the purchase of the factory.

Required:

Record the transactions in the accounting records of Kim Traders LAd for The financial years ended

31

December

2023

and

31

December

2024,

Kim Traders recognises government grants as a reduction of the cost of the assets.

QUESTION 4 ( 1 2 Mark On 1 . Januany 2 0 2 3 ,

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