Question 3 - Week 3 (11 marks) TAKULAH Traders Ltd purchased a machine for $ XXXXXXXXXXand there was an accumulated depreciation balance of $ XXXXXXXXXXat 30 June 2022. Its fair value is assessed at...

Week 3 solution:
Journal entry as per AASB 116:
    Date
    Particulars
    Debit
    Credit
    30 June 2022
    Loss of revaluation of assets (Note 1)
     90,000
     
     
    Accumulated depreciation- Machine
     1,10,000
     
     
    Machine
     
     2,00,000
     
    (to recognize loss on revaluation of assets)
     
     
     
     
     
     
    30 June 2023
    Depreciation expenses
     80,000
     
     
    Accumulated depreciation
     
     80,000
     
    (To record dep for the current year) (Note-2)
     
     
     
     
     
     
    01 June 2023
    Machine
     90,000
     
     
    Revaluation gain reserve
     
     90,000
     
    (To recognize revaluation of assets)
     
     
Note 1: Computation of loss or gain on revaluation:
Impairment loss/ revaluation gain = carrying value of assets – fair value of assets
                    = (650000-110000) – 450000 = 90,000
In the case, there is revaluation loss so impairment loss will be debited, and machine value will be reduced.
Note 2: Computation of depreciation expenses:
Depreciation expenses = (revised book value – residual value)/ estimated useful life
            = (450000- 50000)/5 = 80000
Note 3: Computation of revaluation of assets:
Revaluation gain = revised book value as on 01 July 2023- fair value
            = (450000-80000) – 460000 = 90000
Week 5 solution:
Determination of fair value of leased assets:
Fair value of leased assets = Cash flows at each year * PV factor @11%
= (60000* 1) +(65000* 0.901) +(65000* 0.812) +(65000* 0.731)+ (65000* 0.659) +(65000* 0.593)
= 60000 + 58500 + 52650 + 47450 + 42250 + 38350
= $299200
Week 6 solution:
a. Computation of sick leave expenses for Dainty Limited:
Sick leave exp = Avg salary per week * % employees availed
Sick leave expenses = (200000 avg salary *2 weeks * 56% employees) + (200000 avg salary for 1 week * 1 week * 22% employees) = 268000
In the case, 22% employees are expected to take no leave so there will be no expenses recorded for the employees.
b. Journal entry for each week: sick leave exp:
    Particulars
    Debit
    Credit
    Expenses for sick leave
     5,154...