Homework Answers
Answer:
a)
1.) Under IFRS
| Date | Particulars | Debit ($) | Credit ($) |
| 1-Jan-2017 | Cash | 221000 | |
| Building | 174300 | ||
| Gain on sale | 46700 | ||
| (To record sale of building) |
2.) Under US GAAP
| Date | Particulars | Debit ($) | Credit ($) |
| 1-Jan-2017 | Cash | 2210000 | |
| Building | 174300 | ||
| Deferred Gain on Sale | 46700 | ||
| (To record sale of Building) | |||
| 31-Dec-2017 | Deferred Gain on Sale | 4670 | |
| Gain on Sale | 4670 | ||
| (To record amortization of deferred gain for the year 2017) | |||
| 31-Dec-2018 | Deferred Gain on Sale | 4670 | |
| Gain on sale | 4670 | ||
| (To record amortization of deferred gain for the year 2018) |
b)
| Date | Particulars | Debit ($) | Credit ($) |
| 31-Dec-2017 | Gain on Sale | 42030 | |
| Deferred Gain on Sale | 42030 | ||
| (To record effect of Conversion from IFRS to US GAAP) | |||
| 31-Dec-2018 | Retained Earnings | 37360 | |
| Deferred Gain on Sale | 37360 | ||
| (To record effect of conversion from IFRS to US GAAP) |
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CH11Question5
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