Question 2 20X6: Jane produced the following trial balance as at 30 June 20x6 $000 $000 Land at cost 2,160 Building at cost 1,080 Plant and equipment at cost 1,728 Intangible assets 810 Accumulated depreciation-30.6.20x5 Building 432 Plant and equipment 504 Interim dividend paid 108 Receivable and payable 585 Cash and bank balance 41.4 Inventory as at 30.6.20x6 586.8 Taxation 14.4 Deferred tax 37.8 Distribution cost 529.2 Administrative expenses 946.8 Retained earning b/f 891 Sales revenue 9480.6 Cost of sales 5909.4 Ordinary share of 50p each 2160 Share premium account 432 The following information is available: 1) A revaluation of the Land and Buildings on | July 20X5 resulted in an increase of £3,240,000 in the Land and £972,000 in the Buildings. This has not yet been recorded in the books, 2) Depreciation: - Plant and Equipment are depreciated at 10% using the reducing balance method. -Intangible assets are to be written down by £540,000. -Buildings have an estimated Iife of 30 years from date of the revaluation. 3) Taxation -The current tax is estimated at £169,200. -There had been an overprovision in the previous year. -Deferred tax is to be increased by £27,000. 4) Capital -150,000 shares were issued and recorded on | July 20X5 for 8Op each. -A further dividend of 5p per share has been declared on 30 June 20X6. 1.Prepare statement of financial position

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section19.6: Buying Intangible Assets And Calculating Amortization Expense

Problem 1OYO

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Question 2 20X6:

Jane produced the following trial balance as at 30 June 20x6

	$000	$000
Land at cost	2,160
Building at cost	1,080
Plant and equipment at cost	1,728
Intangible assets	810
Accumulated depreciation-30.6.20x5
Building		432
Plant and equipment		504
Interim dividend paid	108
Receivable and payable	585
Cash and bank balance	41.4
Inventory as at 30.6.20x6	586.8
Taxation		14.4
Deferred tax		37.8
Distribution cost	529.2
Administrative expenses	946.8
Retained earning b/f		891
Sales revenue		9480.6
Cost of sales	5909.4
Ordinary share of 50p each		2160
Share premium account		432

The following information is available:

1) A revaluation of the Land and Buildings on | July 20X5 resulted in an increase of £3,240,000 in the

Land and £972,000 in the Buildings. This has not yet been recorded in the books,

2) Depreciation:

- Plant and Equipment are depreciated at 10% using the reducing balance method.

-Intangible assets are to be written down by £540,000.

-Buildings have an estimated Iife of 30 years from date of the revaluation.

3) Taxation

-The current tax is estimated at £169,200.

-There had been an overprovision in the previous year.

-Deferred tax is to be increased by £27,000.

4) Capital

-150,000 shares were issued and recorded on | July 20X5 for 8Op each.

-A further dividend of 5p per share has been declared on 30 June 20X6.

1.Prepare statement of financial position

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