The below is an extract from the fixed asset register of ABC Ltd as at 31 December 2019 Date of Purchase Cost useful life Land 1-Jan-30 6,000,000.00 0 Building 28-Feb-17 2,000,000.00 20 Vehicle: 650,000.00 Toyota Hilux 1-Oct-19 350,000.00 5 Ford Ranger 30-Jun-17 300,000.00 5 Furniture and Fittings 1-May-20 150,000.00 2 Activities throughout the 2020 Financial Period: 1. New Machinery have been purchased on 01 April 2020 at a Cost of N$ 4000,000. The machinery has been installed on the 15 April 2020 and was available for use on the 01 May 2020. Machinery is the only property plant and equipment of the company that is measured according to the revaluation method. 1.1. On the 30th of October 2020 management decided to revalue the machinery due to a drastic decline in the revenue from sale of machinery produced inventory.Net replacement cost for the machine as at the 30th of October 2020 is N$2 000 000. 2. The Toyota Hilux was involved in an accident on 1 October 2020 due to the floods and was written off by the insurance company. A new vehicle has been purchased with the insurance claim on the 31st of December 2020. 3. Portions of land were sold as below: Land costing N$500 000 sold for N$700 000 to a business person. Land costing N$200 000 has been donated to a pre-school for children with learning disabilities. Page 13 of 21 4. A floor of the building costing N$600 000 has been turned into a commercial rental space for dentists. 5. Assets are depreciated on a straight line basis. 6. Residual value of 10% of cost is applied to all assets purchased in the financial period ending December 2020. Question: 1.Calculate and prepare Journal entries to depict depreciation for the assets for the period ended 31 December 2020 for ABC pvt Ltd. 2.Disclose the property plant and equipment information in the financial statements of ABC Ltd for the year ended 31 December 2020.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
The below is an extract from the fixed asset register of ABC Ltd as at 31 December 2019
Date of Purchase
Cost
useful life
Land
1-Jan-30
6,000,000.00
0
Building
28-Feb-17
2,000,000.00
20
Vehicle:
650,000.00
Toyota Hilux
1-Oct-19 350,000.00
5
Ford Ranger
30-Jun-17 300,000.00
5
Furniture and Fittings
1-May-20
150,000.00
2
Activities throughout the 2020 Financial Period:
1. New Machinery have been purchased on 01 April 2020 at a Cost of N$ 4000,000. The machinery has been installed on the 15 April 2020 and was available for use on the 01 May 2020. Machinery is the only property plant and equipment of the company that is measured according to the revaluation method.
1.1. On the 30th of October 2020 management decided to revalue the machinery due to a drastic decline in the revenue from sale of machinery produced inventory.Net replacement cost for the machine as at the 30th of October 2020 is N$2 000 000.
2. The Toyota Hilux was involved in an accident on 1 October 2020 due to the floods and was written off by the insurance company. A new vehicle has been purchased with the insurance claim on the 31st of December 2020.
3. Portions of land were sold as below:
Land costing N$500 000 sold for N$700 000 to a business person.
Land costing N$200 000 has been donated to a pre-school for children with learning disabilities.
Page 13 of 21
4. A floor of the building costing N$600 000 has been turned into a commercial rental space for dentists.
5. Assets are
6. Residual value of 10% of cost is applied to all assets purchased in the financial period ending December 2020.
Question: 1.Calculate and prepare
2.Disclose the property plant and equipment information in the financial statements of ABC Ltd for the year ended 31 December 2020.
Step by step
Solved in 2 steps
