CERTYNEX IFRS ACADEMY

An entity buys a production machine on credit, invoiced at 50,000 by its supplier. It pays non-refundable import duties of 2,000 in cash to customs. Record the initial recognition entry for the machine.

Price invoiced by the supplier (on credit): 50,000
Non-refundable import duties (paid in cash): 2,000

Line 1
Account Property, plant and equipment — cost of the machine
Line 2
Account Payable to the supplier
Line 3
Account Cash — import duties paid