07-22-2009, 04:57 PM
Dear,
Had you mentioned that the respond should be in accordance with IAS 17 then no assumption would have been taken by me.
With regards to the compliance of IAS 17,
Credit unearned finance income of Rs. 100,000 instead of crediting Surplus on revaluation, furthermore, at the end of each of the three years, pass the following entry;
Unearned Finance Income --------------33,333Debit
Profit of sale and lease back --------33,333Credit
Pass the aforesaid entry at the end of each of the three years to amortised the unearned income in full.
Best Regards,
Had you mentioned that the respond should be in accordance with IAS 17 then no assumption would have been taken by me.
With regards to the compliance of IAS 17,
Credit unearned finance income of Rs. 100,000 instead of crediting Surplus on revaluation, furthermore, at the end of each of the three years, pass the following entry;
Unearned Finance Income --------------33,333Debit
Profit of sale and lease back --------33,333Credit
Pass the aforesaid entry at the end of each of the three years to amortised the unearned income in full.
Best Regards,
