F7 Mock Exam Questions
The trial balance of Baka Ltd, a publicly listed company, at 31 March 2009 is as follows:$000 $000Investment property 2,000Building 8,000Plant and equipment – at cost 3,250Accumulated depreciation 1 April 2008- building 3,200- plant 2,200Accumulated profits 1 April 2008 3,050Sales revenues 27,080Purchases 17,000Construction contract costs to 31 March 2008 1,600Construction contract progress billings received 1,500Trade Debtors 7,520Inventory 1,700Cash in bank 3,17010% preference share 1,200Trade creditors 3,340Equity shares 4,0006% Loan Note (issued in 2006) 2,000Property rental 110Distribution cost 340Interim dividend 2,000Administration expenses 1,000Loan interest paid 100_______ ______47,680 47,680_______ ______The following notes are relevant:i) On 31 March 2009, the company’s only remaining building was revalued at $6 million. Thebuilding had an estimated life of 25 years when it was acquired on 1 April 1998 and this hasnot changed as a result of the revaluation. The directors of Angelo wish to incorporate thisvalue in the financial statements for the year ended 31 March 2009.Plant is depreciated at 20% per annum on net book value.ii) The investment property was revaluated at $1.7 million on 31 Mar 2009.iii) Included in the sales revenue is an amount of $1 million relating to sales made under a sales orreturn basis. These goods were subsequently returned in good condition after 31 Mar 2009.These goods were sold at a mark up of 25%.