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Sir can you please explain me this double entry in the above question for defined benifit pension scheme.
Dr Retained earning
Cr oci
Cr trade receivable
Cr defined benifit pendion liability.Thanks.
Hi, I remember the question but, unfortunately, not the detail. I seem to remember that during the year Rod started a defined benefit pension scheme and paid in $600m. The only entry was to Debit Receivables and Credit Cash. Am I right so far?
Ok, this $600m is an expense so far as retained earnings are concerned so needs to be debited there and taken out of Receivables.
But I cannot remember any more than those basic facts so I cannot answer your question concerning the credit to OCI nor the balancing figure (I assume) credited to defined benefit pension liability
Maybe if you could give me more detail, I could answer you better but has BPP not given any explanation within their printed solution (I don’t have a BPP revision kit available to me and will not have in the foreseeable future)
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