DFS help needed re revaluation
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Is there anyone out there who can help me understand in simple terms the revaluation charge to be included in the balance sheet for the following question.
balance sheet figures
Factory buildings @ cost £1200000.00
Accumulated dep-building £464000.00
Plant and machinery @ cost £1770000.00
Accumulated dep-plant £894000.00
notes to account
During the year a machine which cost £50000.0 and with accumulated dep of £30000.00 was sold for £24000.00, giving a profit on disposal of £4000.00. All accounting has been correctly processed and are contained in the above figures.
Depreciation has been charged for the year as follows
Factory Building £24000.00
Plant & machinert £354000.00
These figures are included in the trial balance .
Answer shows revaluation reserve @ £764.00 but can't see how this happens.
Any assistance greatly appreciated as extremely stessed after doing PEV today and liklihood of failing strong as messed up on reconciliation of marginal costing, seasonal variances ( for some strange reason included an extra 4 % in calculation), Section 2 Roce wrong as used £3.5 mill for capital emp and stock turnover I worked in months
Ho Hum !
balance sheet figures
Factory buildings @ cost £1200000.00
Accumulated dep-building £464000.00
Plant and machinery @ cost £1770000.00
Accumulated dep-plant £894000.00
notes to account
During the year a machine which cost £50000.0 and with accumulated dep of £30000.00 was sold for £24000.00, giving a profit on disposal of £4000.00. All accounting has been correctly processed and are contained in the above figures.
Depreciation has been charged for the year as follows
Factory Building £24000.00
Plant & machinert £354000.00
These figures are included in the trial balance .
Answer shows revaluation reserve @ £764.00 but can't see how this happens.
Any assistance greatly appreciated as extremely stessed after doing PEV today and liklihood of failing strong as messed up on reconciliation of marginal costing, seasonal variances ( for some strange reason included an extra 4 % in calculation), Section 2 Roce wrong as used £3.5 mill for capital emp and stock turnover I worked in months
Ho Hum !
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Comments
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Re:DFS help needed re revaluation
Hi,
where did you read this question from?0 -
Re:DFS help needed re revaluation
Question came from lecturer and even though I have the answer I cannot work it back0 -
Re:DFS help needed re revaluation
I would say there must be something in the notes to the balance sheet to say that a non-current asset's fair value is XXX at that date but it hasn't been accounted for in the accounts - you would need to know that figure before moving anything to the reval. reserve?0 -
Re:DFS help needed re revaluation
is the figures u've given are in the right decimal place? please give the right figures first then maybe we could work out how the answer came about.0 -
Re:DFS help needed re revaluation
Very sorry for confusion have edited figues above
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Re:DFS help needed re revaluation
Must have given notes to the question stating that the fair value of a non-current asset was xxxx at takeover date?0