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Question · Substantial completion

Garance's plant is ready for its intended use: substantially all the preparation activities are complete. The cumulative cost in assets under construction comprises 7,800,000 of construction expenditure and 640,000 of capitalised borrowing costs. Record the entry for entry into service.

Construction expenditure
7,800,000
Capitalised borrowing costs
640,000
Your answer
  1. Line 1

    Account Property, plant and equipment (plant in service)

  2. Line 2

    Account Asset under construction

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