ADJUSTMENTS IN FINANCIAL STATEMENTS

The following trial balance extract relates to Topsy Co as at 30 April 20X6:

$’000 $’000
Land at cost 800
Building:
Valuation at 1 May 20X2 1,500
Accumulated depreciation at 30 April 20X5 90
Revaluation surplus at 30 April 20X5 705
On 1 May 20X2, when the carrying amount of the building was $750,000 it was revalued for the first time to $1.5m and its remaining useful life at that date was estimated to be 50 years.

Topsy Co has correctly accounted for this revaluation in the above trial balance. However, Topsy Co has not yet charged depreciation for the year ended 30 April 20X6 or transferred the excess depreciation from the revaluation surplus to retained earnings at 30 April 20X6.

In February 20X6, the land, but not the building, was independently valued at $950,000. This adjustment has yet to be made for the year ended 30 April 20X6.

What is the balance on the revaluation surplus of Topsy Co as at 30 April 20X6 after the required adjustments have been made?