Arch Traders designs and builds arches for gardens. The financial year-end of the business is 28 February. Arch Traders is not a registered VAT vendor.
You are given the following extract of the pre-adjustment trial balance for Arch Traders for the financial year ended 28 February 2024.
ARCH TRADERS
EXTRACT OF THE PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2024
\begin{tabular}{|l|r|c|}
\hline & \multicolumn{1}{|c|}{\begin{tabular}{c}
Debit \\
R
\end{tabular}} & \multicolumn{1}{c|}{\begin{tabular}{c}
Credit \\
R
\end{tabular}} \\
Capital & & 525000 \\
Drawings & 25000 & \\
Buildings & 150000 & \\
Land & 450000 & \\
Equipment & 330400 & 70800 \\
Accumulated depreciation: Equipment (1 October & & \\
2023) & 225000 & \\
Trade receivables control & 250000 & 714750 \\
Inventory & & 300000 \\
\hline
\end{tabular}
Additional information
a) Included in the cost price of equipment on the pre-adjustment trial balance is new equipment bought on 1 September 2023 to the value of R94 400.
b) On 1 February 2024 old equipment with a cost price of R70 800, bought on 1 March 2022, was sold for R 63720.
b) Depreciation for the year must be provided as follows:
- Equipment: \( 12 \% \) per annum on the diminishing balance method
Required:
Compile the property, plant and equipment note for equipment (total column excluded) for Arch Traders on 28 February 2024.
Instructions for numeric responses:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the second decimal after the full stop (eg: 50.56)
3. All amounts that will decrease the closing balance of assets must be recorded with a negative sign in front of the amount (eg: -1000.01)
4. When no amount needs to be entered in a column, then indicate this by entering " 0 " in the column.
Arch Traders
Notes to the financial statements for the year ended 28 February 2024
\begin{tabular}{|l|l|l|}
\hline Property, plant and equipment & Equipment \\
\hline & & \\
\hline
\end{tabular}
