Ginger Ltd is completing its financial statements for the year ended 30 June 2020 . In undertaking the accounting work, it becomes apparent that a vehicle that was thought to be on hand at the end of...

Ginger Ltd is completing its financial statements for the year ended30 June 2020. In undertaking the accounting work, it becomes apparent that a vehicle that was thought to be on hand at the end of the previous financial year had actually been destroyed in a storm on 21 May 2019. The vehicle had a cost of $64,000 and accumulated depreciation of $16,000.

Required:

Provide the accounting entries to account for the discover of this prior period error in accordance withIAS 8 /AASB 108Accounting Policies, Changes in Accounting Estimates and Errors. Ignore the tax effect and assume that the value of the vehicle is material to Ginger Ltd. (narrations are not required).

ANSWER HERE: