Calculate the amortization expenses in the following cases and pass the journal entries as per IAS...
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Calculate the amortization expenses in the following cases and pass the journal entries as per IAS 38: i. An accounting software was purchased for Rs. 80,000 with a useful life of 4 years. A software license was obtained for Rs. 70,000 for software for 8 years. A functional business unit was acquired for 5,00,000 with goodwill of Rs. 175,000. A development cost of Rs. 250,000 of internally developed formula was capitalized in current year with estimated useful life of 5 years. Development cost include Rs. 30,000 as fees paid to Provincial Govt. A product model is sold for Rs. 25,000 which was acquired for Rs. 10,000 in last year with useful life of 5 years. ii. iii. iv. V. Calculate the amortization expenses in the following cases and pass the journal entries as per IAS 38: i. An accounting software was purchased for Rs. 80,000 with a useful life of 4 years. A software license was obtained for Rs. 70,000 for software for 8 years. A functional business unit was acquired for 5,00,000 with goodwill of Rs. 175,000. A development cost of Rs. 250,000 of internally developed formula was capitalized in current year with estimated useful life of 5 years. Development cost include Rs. 30,000 as fees paid to Provincial Govt. A product model is sold for Rs. 25,000 which was acquired for Rs. 10,000 in last year with useful life of 5 years. ii. iii. iv. V.
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To calculate the amortization expenses we need to first determine the annual amortization amount for each case The formula to calculate the annual amo... View the full answer
Related Book For
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
Posted Date:
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