Sumit Ltd reported the following assets in its statement of financial position on 30 June 2021: Land
Question:
Sumit Ltd reported the following assets in its statement of financial position on 30 June 2021:
Land | 25,000 |
Patent | 100,000 |
Plant | 250,000 |
Accumulated Depreciation | (75,000) |
Goodwill | 20,000 |
Inventory | 40,000 |
Accounts receivables | 30,000 |
Cash | 5,000 |
Accounts payables | 20,000 |
The recoverable amount of the entity was calculated to be $354,000.
All assets are measured using the cost method. Inventory is measured at the lower cost and net realizable value in accordance with AASB102 Inventories. The receivables were all considered to be collectible.
Required:
1. Allocate the impairment loss to assets in the CGU as per AASB136 (Please round off to the nearest dollar).
2. Prepare journal entries to record the allocation of the impairment loss at 30 June 2021. Descriptions/Narrations are NOT required.
Asset | Carrying Amount | Proportion | Allocation of Loss | Adjusted Carrying Amount |
DATE | DESCRIPTION | DR | CR |
|---|---|---|---|
Expert Answer:
1 Allocate the impairment loss to assets in the CGU as per AASB136 Please round off to the nearest d... View the full answer
