Question
An entity purchased an equipment for RM100,000 on 1 January 2019. Its useful life is 5 years. On the same day, the entity received a
An entity purchased an equipment for RM100,000 on 1 January 2019. Its useful life is 5 years. On the same day, the entity received a government grant of RM10,000 to help finance the purchase of the equipment. If the company chooses to deduct the grant from the cost of the equipment, the journal entry to recognise the government grant recieved would be:
Debit income from grant(SOPL)RM10,000
Credit PPE (SOFP)RM10,000
TRUE OR FALSE?
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Financial Accounting
Authors: W Steve Albrecht, Earl K Stice
11th Edition
0538746955, 9780538746953
