Raju Bhd purchased a machine for RM100,000 on 1 January 2018. Its useful life is 10 years. On the same day, Maju Bhd received a government grant of RM10,000 to help finance the purchase of the equipment. Raju Bhd uses a deferred income approach to recognize its grant. The journal entry to record the recognition of ammortisation of deferred income is as follow.

DebitAmmortisation of deferred income (SOPL)RM1,000

Credit Deferred income(SOFP)RM1,000