QUESTION 3 (IAS 19) (6) Accumulated short-term compensated absences with the financial year end and the leave cycle on different dates Weale Limited, a retailer opened its doors for business for the first time on 1 January 2013. On 1 January 2018 the company had 20 employees, who were each entitled to 20 working days leave per calendar year.

You may assume that there are 252 working days per calendar year. Employees are obliged to take 10 working days during December. No leave is carried forward to the following leave cycle and a maximum of 5 working days leave is paid out to employees on 31 December each year, 50% of all employees only took 15 working days leave per cycle in order to receive the cash payment. The remaining 50% of the employees took all their leave. Assume the daily tariff of all employees are $200 per employee and that no employees resigned during the year. Assume that the accrued leave for the year ended 28 February 20.9 was $5 850. The year-end of Weale Limited is 28 February of each year. Required: Prepare the journal entries of Weale Limited in respect of the leave paid, as well as the untaken leave for the year ended 28 February 2019. (6)