Hi I have a question on accounting for PPE and recording of Impairments.
So the question goes
Bee Traders purchased machinery on the 01/01/2009 for R150 000. The machinery has a nil residual life. Depreciation is 25% per annum based on the cost method. Recoverable amount of the machinery is as follows based on the cost model:
31/12/2009 R100 000
31/12/2011 R50 000
Prepare the journal entries for Bee Traders from 2009 year to 2011 year. (Show all workings)
I would appreciate if you show me how you work out the amounts for journal entries 🙂