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Bilal Limited owns a bus that has a carrying amount of Rs. 80,000 as at 1 January 2019. This bus is depreciated on the straight-line
Bilal Limited owns a bus that has a carrying amount of Rs. 80,000 as at 1 January 2019. This bus is depreciated on the straight-line method to a nil residual value and had a remaining useful life of 10 years on 1 January 2019. A major inspection of this bus was performed on 1 October 2019 at a cost of Rs. 20 000.
Required:
Show the journal entry relating to the major inspection and present the bus in the detailed statement of financial position of Mushtaq Limited as at 31 December 2019.
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