- This topic has 3 replies, 2 voices, and was last updated 7 years ago by
.
- Posts
Hi,
Is this the complete question from the notes on page 208? Wouldn’t I need a T.B to complete this?
Question 12:
The company had been carrying land and buildings at depreciated cost, but due to a recent rise in property prices, it decided to revalue its
property on 1 October; 2011 to market value. An independent valuer confirmed the value of the property at $60 million (land element $12
million) as at that date and the directors accepted this valuation. The property had a remaining life of 16 years at the date of its revaluation.
A transfer from the revaluation reserve to retained earnings will be made in respect of the realisation of the revaluation reserve. Ignore
deferred tax on the revaluation.
Plant and equipment is depreciated at 15% per annum using the reducing balance method.
No depreciation has yet been charged on any non-current asset for the year ended 30 September, 2012. All depreciation is charged to
cost of sales.Thank you
Hi again, sorry this got left behind. Had to bring it back up for a response.
Thank you
No, it didn’t get left behind – I’m not at home and won’t be until 12 September
I appreciate that this will be too late if you’re doing the exam next month but I’m struggling to be able to help you
I shall continue to try to find a way to get back to you but now you’ll have to post it for a third time because otherwise, when I see that my name is last on the thread, I’ll think that that thread is complete
So, please post your question again
Sorry!
Maliha, I’m home and I’ve checked the notes
You are correct and thank you for pointing it out to me
The figures in the trial balance were:
Land and Buildings at cost $50 million (land $10 million)
Accumulated buildings depreciation $8 million
Thanks again for pointing out the omissions
- The topic ‘Mini Exercises – Non Current Assets’ is closed to new replies.