On 1 July 2016, Liala ltd sold an item of plant to Jordan Ltd Ltd for $150,000 when its carrying value in Liala Ltd book was $200,000 (costs $300,000, accumulated depreciation $100,000). This plant has a remaining useful life of five (5) years form the date of The group measures its property plants and equipment using a costs model. Tax rate is 30 percent. Required: Prepare the necessary journal entries in 30 June 2017 to eliminate the intra-group transfer of equipment.
On 1 July 2016, Liala ltd sold an item of plant to Jordan Ltd Ltd for $150,000 when its carrying value in Liala Ltd book was $200,000 (costs $300,000, accumulated depreciation $100,000). This plant has a remaining useful life of five (5) years form the date of The group measures its property plants and equipment using a costs model. Tax rate is 30 percent. Required: Prepare the necessary journal entries in 30 June 2017 to eliminate the intra-group transfer of equipment.
On 1 July 2016, Liala ltd sold an item of plant to Jordan Ltd Ltd for $150,000 when its carrying value in Liala Ltd book was $200,000 (costs $300,000, accumulated depreciation $100,000). This plant has a remaining useful life of five (5) years form the date of The group measures its property plants and equipment using a costs model. Tax rate is 30 percent. Required: Prepare the necessary journal entries in 30 June 2017 to eliminate the intra-group transfer of equipment.
On 1 July 2016, Liala ltd sold an item of plant to Jordan Ltd Ltd for $150,000 when its carrying value in Liala Ltd book was $200,000 (costs $300,000, accumulated depreciation $100,000). This plant has a remaining useful life of five (5) years form the date of The group measures its property plants and equipment using a costs model. Tax rate is 30 percent.
Required:
Prepare the necessary journal entries in 30 June 2017 to eliminate the intra-group transfer of equipment.
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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Intra-group transactions and its effect is eliminated in consolidated financial statements.
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