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1–the following information was disclosed in the financial statement of Highfield Co for the year ended 31/12/20X2.
20X1 20X2
$ $plant & equipment cost 255 000 235 000
Accum depreciation (100 000) (110 000)During 20X2, the following occurred in respect of plant and equipment:
Purchase of plant and equipment $ 10 000
Depreciation plant and equipment $25 000
loss on disposal of plant and equipment $8 000what were the sales proceeds received on disposal of the plant and equipment?
A $7 000
B $15 000
C $25000
D $8 00002– The following information is available about a company’s dividends:
2005 $
Sept final dividen for the year ended
30 June 2005 paid (declared August 2005) 100 0002006
March Interim dividend for the year ended
30 June 2006 paid 40 000Sept Final dividend for the year ended
30 June 2006 paid (declared August 2006) 20 000what figures, if any, should be disclosed in the company’s statement of profit or loss and and other comprehensive income for the year ended 30 June 2006 and its statement of financial position as at that date?
SPOLOCI SOFP
for the period liabilityA $160 000 deduction $120 000
B $140 000 deduction nil
C nil $120 000
D nil nilJosy, before I answer more of these questions, please tell me:
Have you watched all of my lectures for Paper F3?
and
Does the book where you are getting all these questions from not give answers and workings also? Assuming it does, then it would be must better if you would ask which bit of the workings you do not understand.1. The book value of the assets sold was $15,000. So the sale proceeds must have been $7,000
2. D
Dividends do not appear in the Statement of profit or loss. They only appear in the Statement of financial position if they have been declared (but not yet paid) before the date of the statement.
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