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mited is a anufacturing company that manufactures rugby balls. Green Limited has a $31$ December year end.

Machine Super $00$

Green Limited purchased machine Super $00$ for R$1000000$ on $1$ Janua $2018,$ and uses rugby ballsGreenGreen

Machine Super $00$ comprises of three components. Details of the components are as follows:

Component Cost Useful Life Residual Value

Rand Years Rand

Component $150000005400000$

Component $230000004$ none

Component $320000002$ none

Total $10000000$

$1.$ The components can function independently, but are used as a unit. Components are independently replaced at the end of their useful life. Parts cannot be realized independently at the end of their useful life.

$2.$ On $30$ September $2019,$ part $22,$ a part of component $2$ broke down unexpectedly. The part was replaced at a cost of R$1100000.$ Management estimated that the original cost of part was R$1000000.$

$3.$ On $31$ December $2019$ at the end of its useful life, component $3$ was replaced at a cost of R$2100000.$

$4.$ Costs of day$-$to$-$day servicing of the machine amounted to R$45000$ during $2019(2018$:R$42000).$

$5.$ During $2019$ the useful lives and residual values of the components were reassessed and have not been changed.

REQUIRED:

a$)$ Calculate the amount of depreciation to be expensed by Green Limited in respect of the Machine Super $00$ for the financial reporting period ended $31$ December $2018$ and $31$ December $2019.$

b$)$ Prepare all the journal entries to account for the replacement of part $22$ of Machine Super $00$ during the year ended $31$ December $2019.$

c$)$ Prepare the following notes to the financial statements of Green Limited for the year ended $31$ December $2019,$ to comply with International Financial Reporting Standards $($IFRSs$)$:

Property, plant and Green Limited is a manufacturing company that manufactures rugby balls. Green Limited has a $31$ December year end.

Machine Super $00$

Green Limited purchased machine Super $00$ for R$10000000$ on $1$ January $2018,$ and uses it for the manufacturing of rugby balls.

Machine Super $00$ comprises of three components. Details of the components are as follows:

Component Cost Useful Life Residual Value

Rand Years Rand

Component $150000005400000$

Component $230000004$ none

Component $320000002$ none

Total $10000000$

$1.$ The components can function independently, but are used as a unit. Components are independently replaced at the end of their useful life. Parts cannot be realized independently at the end of their useful life.

$2.$ On $30$ September $2019,$ part $22,$ a part of component $2$ broke down unexpectedly. The part was replaced at a cost of R$1100000.$ Management estimated that the original cost of part was R$1000000.$

$3.$ On $31$ December $2019$ at the end of its useful life, component $3$ was replaced at a cost of R$2100000.$

$4.$ Costs of day$-$to$-$day servicing of the machine amounted to R$45000$ during $2019(2018$:R$42000).$

$5.$ During $2019$ the useful lives and residual values of the components were reassessed and have not been changed.

REQUIRED:

a$)$ Calculate the amount of depreciation to be expensed by Green Limited in respect of the Machine Super $00$ for the financial reporting period ended $31$ December $2018$ and $31$ December $2019.$

b$)$ Prepare all the journal entries to account for the replacement of part $22$ of Machine Super $00$ during the year ended $31$ December $2019.$

c$)$ Prepare the following notes to the financial statements of Green Limited for the year ended $31$ December $2019,$ to comply with International Financial Reporting Standards $($IFRS$$s$)$:

$$ Property, plant and equipment.

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