3.20 000 shares have been bought by ABC Ltd in Taurus Ltd at a cost of R20 000 for speculativepurposes. Transactions costs amounted to R1 000. At year end the value of the shares investedwas R25 000. The financial asset reflected in the statement of financial position at year endis as follows:1.Current assets R25 0002. Non-current assets R25 0003. Current assets R26 0004. Non-current assets R26 000

Current assets are those assets which can be sold at any time in the market and can be converted…

purposes. ransactions costs am year end the value of the sh was R25 000. The financial asset reflected in the statement of financial position is as follows: 1. Current assets R25 000 2. Non-current assets R25 000 3. Current assets R26 000 4. Non-current assets R26 000

purposes. ransactions costs am year end the value of the sh was R25 000. The financial asset reflected in the statement of financial position is as follows: 1. Current assets R25 000 2. Non-current assets R25 000 3. Current assets R26 000 4. Non-current assets R26 000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

3.
20 000 shares have been bought by ABC Ltd in Taurus Ltd at a cost of R20 000 for speculative
purposes. Transactions costs amounted to R1 000. At year end the value of the shares invested
was R25 000. The financial asset reflected in the statement of financial position at year end
is as follows:
1.
Current assets R25 000
2. Non-current assets R25 000
3. Current assets R26 000
4. Non-current assets R26 000

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