(a) Mushangalimited purchased a specialised machine on 1 January 2015 for N$10 000 000. Mushanga Limited provides for depreciation on the diminishing balance method at 20%. The following relates to an error made by MushangaLimited 1. It processed depreciation of ...

2020 N$ 000 2019 N$ 000 Income 14 600 12 700 Cost of sales 7 200 6 100 Gross profit 7400 6 600 Operating expenses (3 600) (3 200) Interest paid (500) (400) Profit before tax 3 300 3 000 Taxation (1 320) (1200) Profit and total comprehensive income for the year 1 980 1 800 ADDITIONAL INFORMATION:                                                                       2020        N$ 000 2019 N$ 000 Dividends           500 400 Retained earnings: For year 1480 1 400 Opening balance 3 200 1 800 Closing ...

Lima Limited is a company operating in the farming sector. The company purchased its only item of equipment on 2 January 2017 at a cost of N$100 000. During the 2018 financial year, it was discovered that the equipment purchased ...