Explain how the transactions below should be treated in the financial statements of Gidimadjor Catering Services in accordance to IAS 10; Events after the Reporting Period: i. Gidimadjor Catering Services has an investment worth GH¢1 million in its financial statements at 31 December 2018. Due to the continuing recession, the investment reduced in value to GH¢900,000 by 15, January 2019. ii. On 8 January 2019, one of the accountants left Gidimadjor Catering Services suddenly. On further investigation, the company realized that this employee had been paying himself money from the bank account in relation to false rental invoices. The amount of the overpayment was found to be GH¢86,000. With the help of the police, the accountant was tracked down and repaid all of the money on 18 January 2019. iii. On 10 January 2019, Gidimadjor Catering Services sold some inventory for GH¢80,000. This inventory had been included in the year-end inventory count at cost of GH¢100,000. iv. Gidimadjor Catering Services LTD sold a truck on 31 December 2018 for GH¢20,000. This truck had been purchased on 1 January 2013. On 31 December, a non-refundable deposit of GH¢15,000 was paid towards a new truck and a cheque was posted with the balancing payment of GH¢50,000. This cheque was not received and cashed by the seller until 4 January 2019
Explain how the transactions below should be treated in the financial statements of Gidimadjor
Catering Services in accordance to IAS 10; Events after the Reporting Period:
i. Gidimadjor Catering Services has an investment worth GH¢1 million in its financial statements
at 31 December 2018. Due to the continuing recession, the investment reduced in value to GH¢900,000
by 15, January 2019.
ii. On 8 January 2019, one of the accountants left Gidimadjor Catering Services suddenly. On
further investigation, the company realized that this employee had been paying himself money from the
bank account in relation to false rental invoices. The amount of the overpayment was found to be
GH¢86,000. With the help of the police, the accountant was tracked down and repaid all of the money
on 18 January 2019.
iii. On 10 January 2019, Gidimadjor Catering Services sold some inventory for GH¢80,000. This
inventory had been included in the year-end inventory count at cost of GH¢100,000.
iv. Gidimadjor Catering Services LTD sold a truck on 31 December 2018 for GH¢20,000. This
truck had been purchased on 1 January 2013. On 31 December, a non-refundable deposit of
GH¢15,000 was paid towards a new truck and a cheque was posted with the balancing payment
of GH¢50,000. This cheque was not received and cashed by the seller until 4 January 2019.
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