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Illustration 25 : Accounting for assets at amortised cost primary A Ltd has made a security deposit whose details are described below. Make necessary journal
Illustration 25 : Accounting for assets at amortised cost primary A Ltd has made a security deposit whose details are described below. Make necessary journal entries for accounting of the deposit in the first year and last year. Assume market interest rate for a deposit for similar period to be 12% per annum. Particulars Details Date of Security Deposit (Starting Date) 1-Apr-20X1 Date of Security Deposit (Finishing Date) 31-Mar-20X6 Description Lease Total Lease Period 5 years Discount rate 12.00% Security deposit (A) 10,00,000 Present value factor at the 5th year 0.567427
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