1. 

   Patrova01 Active Member

   hi,
   please assist reconcile the statementof changes in equity with the solutions manual. I get a total surplus of 450 000 from revaluing land and buildings.however,the solutions manual has an additional 45 000,getting to a total of 495 000. where is this coming from?
   
   Thanks

    

   Patrova01, Jul 15, 2017

   #1
2. 

   Simon James ActEd Tutor Staff Member

   Hi
   Buildings cost 450,000 less depreciation 45,000 = 405,000. Revalued to 500,000. Change in revaluation reserve = +95,000
   Land cost 840,000 less depreciation 0 = 840,000. Revalued to 1,000,000. Change in revaluation reserve = +160,000
   Total change + 255,000
   Starting reverve = 240,000
   Closing reserve = 495,000

    

   Simon James, Jul 18, 2017

   #2

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in