Kandy The extracts from the trial balance of Kandy as at 30 September 2014 are: Land...

 

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Kandy The extracts from the trial balance of Kandy as at 30 September 2014 are: Land ($5 million) and buildings-at cost Plant and equipment - at cost Accumulated depreciation at 1 October 2013 Building Plant and equipment The following notes are relevant: Non-current assets: N$'000 55 000 58 500 N$'000 20 000 34 500 The price of property has increased significantly in recent years and on 1 October 2013, the directors decided to revalue the land. The directors accepted the report of an independent surveyor who valued the land at N$8 million on that date. The remaining life of the buildings at 1 October 2013 was 15 years. Plant and equipment is depreciated at 12% % per annum using the reducing balance method. No depreciation has yet been charged on any non-current asset for the year ended 30 September 2014. Depreciation is charged to cost of sales. Required: Prepare extracts from the statement of profit or loss for Kandy for the year ended 30 September 2014 and from the statement of financial position as at the same date with regards property, plant and equipment. Kandy The extracts from the trial balance of Kandy as at 30 September 2014 are: Land ($5 million) and buildings-at cost Plant and equipment - at cost Accumulated depreciation at 1 October 2013 Building Plant and equipment The following notes are relevant: Non-current assets: N$'000 55 000 58 500 N$'000 20 000 34 500 The price of property has increased significantly in recent years and on 1 October 2013, the directors decided to revalue the land. The directors accepted the report of an independent surveyor who valued the land at N$8 million on that date. The remaining life of the buildings at 1 October 2013 was 15 years. Plant and equipment is depreciated at 12% % per annum using the reducing balance method. No depreciation has yet been charged on any non-current asset for the year ended 30 September 2014. Depreciation is charged to cost of sales. Required: Prepare extracts from the statement of profit or loss for Kandy for the year ended 30 September 2014 and from the statement of financial position as at the same date with regards property, plant and equipment.

Answer rating: 100% (QA)

Answer Revaluation Method for Depreciation Solution Prepare extr... View the full answer