Accountancy
Asaaba Ltd receives a 20% grant towards the cost of a new item of machinery, which cost GH¢ 100,000. The machinery has an expected life of four years and a nil residual value. The expected profits of the company, before accounting for depreciation on the new machine or the grant, amount to GH¢ 50,000 per annum in each year of the machinery's life.
Required Show how Asaaba Ltd should account for this grant in the financial statements over the life of the machinery in accordance with IAS 20 using the i. Netting of method ii. Deferred Income method
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c) Asaaba Ltd receives a 20% grant towards the cost of a new item of machinery,...
c) Asaaba Ltd receives a 20% grant towards the cost of a new item of machinery, which cost GH¢ 100,000. The machinery has an expected life of four years and a nil residual value. The expected profits of the company, before accounting for depreciation on the new machine or the grant, amount to GH¢ 50,000 per annum in each year of the machinery's life. Required Show how Asaaba Ltd should account for this grant in the financial statements over the...
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prepare journal entries. Please give right answer Wattle Ltd manufactures and sells soft drinks. The financial...
prepare journal entries. Please
give right answer
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