Money Ltd acquired equipment on 1 July 2021 at $105,000. The equipment is depreciated using straight-line method and subsequently measured using the revaluation model.

Money Ltd expects the equipment to have 7 years useful life and a zero residual value.

The information below is available regarding the equipment in the following periods.


Date Fair Value Cost to Sell Value in Use
30 June 2023            $ 85,000 $ 2,000 $90,000
30 June 2025            $ 45,000 $ 3,000 $40,000



Assuming indications of impairment exist on the dates above, please prepare the general journal entries (as per template below) to account for the equipment on the following dates:

  1. 30 June 2023
  2. 30 June 2025
General Journal
Date Accounts Debit Credit

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