Prepare the journal entries for Scenario 2 only that would be processed on 1 June 2019 in respect of the revaluation of the plant if the entity uses the elimination method to revalue items.
Prepare the journal entries for Scenario 2 only that would be processed on 1 June 2019 in respect of the revaluation of the plant if the entity uses the elimination method to revalue items.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During 2020 the directors of Chana Ltd decided to value its industrial plant to market value. The plant was acquired on 1 June 2015 at a cost of R45 000 000 and had an estimated useful life of 15 years on the date of acquisition. The plant was valued at R41 500 000 on 1 June 2019. Plant is carried using the revaluation method and
Prepare the
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