EXERCISE 21 - Solution

Note:

20-3
1/1/20-3
1/1/20-3

20-3
1/1/20-3
1/1/20-3
20-5
1/1/20-5
1/1/20-5

(i) The question should include the following details:

1/1/20-6 Revalued buildings owned at 770,000
( 319,000 of this is attributable to buildings purchased on 1/1/20-5)

Balance b/d
Revaluation Res.

Balance b/d
Revaluation Res.
Balance b/d
Bank
Bank Contractor
Wages

20-6
1/1/20-6
1/1/20-3

Balance b/d
Revaluation Reserve

20-7
1/1/20-7
1/1/20-7

Balance b/d
Revaluation Res.

20-3
1/1/20-3
31/12/20-3

Revaluation Res.
Balance c/d

20-4
31/12/20-4

Balance c/d

20-5
31/12/20-5

Balance c/d

20-6
1/1/20-6
31/12/20-6

Revaluation Res.
Balance c/d

20-7
1/1/20-7
1/1/20-7
31/12/20-7

Disposal
Revaluation Res.
Balance c/d

Land Account
20-3
100,000
1/1/20-4
70,000
170,000
Building Account
20-3
250,000
160,000
31/12/20-3
410,000
20-5
410,000
31/12/20-5
180,000
80,000
30,000
700,000
20-6
700,000
31/12/20-6
70,000
770,000
20-7
770,000
31/12/20-7
129,000
31/12/20-7
899,000
Building Account
20-3
1/1/20-3
15,000
8,200
31/12/20-3
23,200
20-4
16,400
1/1/20-4
31/12/20-4
16,400
20-5
30,400
1/1/20-5
31/12/20-5
30,400
20-6
30,400
1/1/20-6
15,400
31/12/20-6
45,800
20-7
6,380
1/1/20-7
9,020
31/12/20-7
11,600
27,000
1/1/20-8

Page 48

Land disposal a/c

170,000
170,000

Balance c/d

410,000
410,000

Balance c/d

700,000

700,000
Balance c/d

770,000
770,000

Disposal
Balance c/d

319,000
580,000
899,000

Balance b/d
Profit and Loss

15,000
8,200
23,200

Balance b/d
Profit and Loss

8,200
8,200
16,400

Balance b/d
Profit and Loss

16,400
14,000
30,400

Balance c/d
Profit and Loss

30,400
15,400
45,800

Balance b/d
Profit and Loss

15,400
11,600

Balance c/d

27,000
11,600

Chapter 2 - Section 5

20-4
1/1/20-4
31/12/20-3

20-7
01/01/20-4
31/12/20-7

Land account
P & L (Profit)

Buildings
P & L (Profit)

Disposal of Land Account

20-4
170,000
1/1/20-4
Bank
20,000
190,000
Disposal of Buildings Account
20-7
319,000
1/1/20-7
Depreciation
197,380
1/1/20-7
Depreciation
516,380

190,000
190,000

6,380
510,000
516,380

Revaluation Reserve Account

1/1/20-4
1/1/20-7
31/12/20-7

Revenue reserve
Revenue reserve
P & L (Profit)

70,000
34,800
272,800

1/1/03
1/1/03
1/1/20-6
1/1/20-7

366,400

Land
Buildings
Provision for Dep
Land and Buildings
Provision for Dep
Land and Buildings
Provision for Dep

70,000
160,000
15,000
70,000
30,400
129,000
9,020
366,400

Revenue Reserve Account

1/1/20-4
1/1/20-7

Revenue reserve
Revenue reserve

70,000
34,800

EXERCISE 22 - Solution
Note:

Error 1/1/20-2 should read Purchased buildings for 410,000

Land Account
1/1/20-0
1/1/20-0

Balance b/d
Revaluation Res.

260,000
50,000
310,000

1/1/20-1

Land disposal a/c

310,000
310,000

Building Account
1/1/20-0
1/1/20-0

Balance b/d
Revaluation Res.

1/1/20-2
1/1/20-2

Balance b/d
Bank
Bank Contractor
Wages

1/1/20-3

Balance b/d
Revaluation Reserve

1/1/20-4
1/1/20-4

Balance b/d
Revaluation Res.

Chapter 2 - Section 5

500,000
80,000
580,000
580,000
410,000
160,000
70,000
1,220,000
1,220,000
122,000
1,342,000
1,342,000
176,000
1,518,000

31/12/20-0 Balance c/d

31/12/20-2 Balance c/d

580,000
580,000
1,220,000

31/12/20-3 Balance c/d

1,220,000
1,342,000

01/02/20-4 Disposal
31/12/20-4 Balance c/d

Page 49

1,342,000
638,000
880,000
1,518,000