In question no 1 why the option 4 is incorrect. well in revenue grants we have option to present revenue grant as a credit in the statement of profit or loss or also we can deduct from the related expense by this the answer can also be option 4 am I right?
bksh says
In question no 1 why the option 4 is incorrect. well in revenue grants we have option to present revenue grant as a credit in the statement of profit or loss or also we can deduct from the related expense by this the answer can also be option 4 am I right?
MikeLittle says
You are correct – I should have specified that it was a grant related to an asset
Thanks
Hamza says
hello sir , wouldn’t it be third option in Q4
DR NCA 70000 CR CASH 70000
DR DEP 21000 CR NCA 21000
Please elaborate
Yang says
Dear Sir?about Q4?the option three,need to add to 2,100 to provision depreciation,need to cr provision depreciation dr retained earnings,right?
MikeLittle says
I believe that that is the effect of the printed solution!
vuvietquang90 says
Can you explain for me question 2? My answer is 1st and 4th choice due to monetary grant for revenue exp and non-monetary grant by assets
pamella says
Question 3 how is the calculation really done i seem to be lost.
MikeLittle says
1,000 x 40% = grant in year 1
600 x 40% = grant in year 2
360 x 40% = grant in year 3 = 144