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COURSE: DIPLOMA IN ACCOUNTING SUBJECT: FINANCIAL ACCOUNTING & REPORTING IV Jeju Bhd has leased out its building to AA bhd under an operating lease for
COURSE: DIPLOMA IN ACCOUNTING
SUBJECT: FINANCIAL ACCOUNTING & REPORTING IV
Jeju Bhd has leased out its building to AA bhd under an operating lease for five years. The lease commenced on 1.1.2016 when the value of the building was RM20 million. The financial year-end for Jeju Bhd is 31 December every year. The annual lease rental is RM2 million. AA Bhd uses the building as a warehouse for its inventory. Required: a. Explain how the building should be accounted for in the book of Jeju Bhd. b. Show the journal entries to record the above information
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Expert Witnessing In Forensic Accounting
Authors: Thomas A. Buckhoff
1st Edition
9781930217140, 1930217145
