question archive A On 1 January 2018, DSP Bhd purchased a new machine for cash of RM1,500,000
A On 1 January 2018, DSP Bhd purchased a new machine for cash of RM1,500,000
Subject:AccountingPrice: Bought3
A On 1 January 2018, DSP Bhd purchased a new machine for cash of RM1,500,000. The machine has an expected life of three years and a nil residual value. DSP received a 50% grant towards the cost of machine on the same date. DSP Bhd's accounting policy for capital-based grants is to treat them as deferred credits and release them to income over the life of the asset to which they relate. On 31 December 2018, it is found that DSP can no longer fulfil the requirements of the government and hence DSP had to repay the grant in full on 31 December 2018. Required: Prepare the journal entries to record the grant, depreciation and the repayment of the grant. (8 marks) TY
