On 1 January 2020, an entity placed an order to purchase a plant costing RM100,000 from...

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On 1 January 2020, an entity placed an order to purchase a plant costing RM100,000 from a supplier. The entity agreed to pay a deposit of RM20,000 on the same day. At the end of January, the plant was delivered to the entity, and payment of RM30,000 cash was made on the same day. The balance is to be settled in the following months. Required: (1) Explain briefly the accounting treatment for the above transactions and (ii) How the transactions are to be recorded in the Books of Accounts (Journal and General Ledger) On 1 January 2020, an entity placed an order to purchase a plant costing RM100,000 from a supplier. The entity agreed to pay a deposit of RM20,000 on the same day. At the end of January, the plant was delivered to the entity, and payment of RM30,000 cash was made on the same day. The balance is to be settled in the following months. Required: (1) Explain briefly the accounting treatment for the above transactions and (ii) How the transactions are to be recorded in the Books of Accounts (Journal and General Ledger)

Answer rating: 100% (QA)

On Date Of Placing Order Date Particulars 01Jan Advance for Pla... View the full answer