Glenelg Bay Ltd has a Cash-Generating Unit (CGU) comprised of assets as follows:

Asset Carrying Amount
Inventory 15,000
Goodwill 30,000
Plant 80,000
Motor Vehicles 40,000


On 30 June 2020, Glenelg Bay performed an impairment test for this CGU and determined that the recoverable amount is $120,000.


  1. Calculate the impairment loss as at 30 June 2020.
  2. Prepare a table as provided below to allocate the above impairment loss:
ASSETS Carrying amount Proportion Loss allocated Adjusted carrying amount


(c) Prepare a general journal (as per template below) to record the above impairment loss for the year ended 30 June 2020. Include a narration.


General Journal
Date Accounts Debit Credit

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