Q3. As at 1 July 2018, Farrelly Ltd has an item of machinery that originally cost $40 000 and has accumulated depreciation of $15 000. Its remaining life is assessed to be five years, after which time it will have no residual value. Farrelly decided on 1 July 2018 that the item should be revalued to its current fair value, which was assessed as $45 000. 1. What is the total revaluation increment of this machinery? 2. What the journal entries on 1 July 2018 would be
Q3. As at 1 July 2018, Farrelly Ltd has an item of machinery that originally cost $40 000 and has accumulated depreciation of $15 000. Its remaining life is assessed to be five years, after which time it will have no residual value. Farrelly decided on 1 July 2018 that the item should be revalued to its current fair value, which was assessed as $45 000. 1. What is the total revaluation increment of this machinery? 2. What the journal entries on 1 July 2018 would be
Q3. As at 1 July 2018, Farrelly Ltd has an item of machinery that originally cost $40 000 and has accumulated depreciation of $15 000. Its remaining life is assessed to be five years, after which time it will have no residual value. Farrelly decided on 1 July 2018 that the item should be revalued to its current fair value, which was assessed as $45 000. 1. What is the total revaluation increment of this machinery? 2. What the journal entries on 1 July 2018 would be
Q3. As at 1 July 2018, Farrelly Ltd has an item of machinery that originally cost $40 000 and has accumulated depreciation of $15 000. Its remaining life is assessed to be five years, after which time it will have no residual value. Farrelly decided on 1 July 2018 that the item should be revalued to its current fair value, which was assessed as $45 000. 1. What is the total revaluation increment of this machinery? 2. What the journal entries on 1 July 2018 would be
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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