MTQs

The following balances appear in the accounting records of Golding, a limited liability company, at 30 June 2006:
$000
Land and buildings:
cost 10,000
accumulated depreciation at 1 July 2005 3,600
Plant and equipment:
cost 6,000
accumulated depreciation at 1 July 2005 3,200
Receivables 3,600
Cash at bank 1,200
Payables 2,500
Accruals 500
8% Loan notes 1,000
Ordinary share capital 5,000
Share premium account 2,200
Retained earnings 1 July 2005 4,600
The following further information is available:
(1) Inventory at 30 June 2006 was $4,700,000
(2) The company’s land and buildings were revalued at 1 July 2005. The revaluation has not yet been reflected in
the balances given above.
Details:
Cost Accumulated Net book Revalued
depreciation value amount
$000 $000 $000 $000
Land 4,000 – 4,000 5,000
Buildings 6,000 3,600 2,400 4,000
(3) The draft profit for the year was $2,900,000. However, three adjustments are required:
(a) Receivables totalling $280,000 are to be written off
(b) Provision is to be made for bonuses to the directors totalling $250,000
(c) Depreciation charges for the year, based on revalued amounts:
Buildings $200,000
Plant and equipment $1,200,000