During 20X9, Bad Limited gives a guarantee of certain borrowings of Girls Limited whose financial condition at

Question:

During 20X9, Bad Limited gives a guarantee of certain borrowings of Girls Limited whose financial condition at that time is sound. During 20Y0, the financial condition of Girls Limited deteriorates and at 30 June 20Y0 Girls Limited files for protection from its creditors.

Requirement What accounting treatment is required at:

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