題目

Gusna Co purchased a building on 31 December 20X1 for $750,000. At the date of acquisition, the useful life of the building

was estimated to be 25 years and depreciation is calculated using the straight-line method. At 31 December 20X6, an

independent valuer valued the building at $1,000,000 and the revaluation was recognised in the financial statements.

Gusna’s accounting policies state that excess depreciation arising on revaluation of non-current assets can be transferred

from the revaluation surplus to retained earnings

What is the journal entry to record the transfer of excess depreciation from

the revaluation surplus to retained earnings?

A

Dr Revaluation surplus?????????? $20,000Cr Retained earnings???????????? ?$20,000

B

Dr Revaluation surplus??????????? $12,500Cr Retained earnings????????????? $12,500

C

Dr Retained earnings????????????? $20,000Cr Revaluation surplus?????????? ?$20,000

D

Dr Revaluation surplus?????????? ? $12,500Cr Retained earnings??????????????? $12,500

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Chapter8Tangiblenon-currentassets

The excess deprecation is the new depreciation amount of $50,000 less the old depreciationcharge of $30,000

($750,000/25 years)

which is $20,000. This amount should be debitedfrom the revaluation surplus and credited to retained earnings each year.

Remember that both retained earnings and the revaluations surplus are credit balances in the trial balance

多做幾道

Which accounting concept should be considered if the owner of a business takes goods from inventory for his own personal

use?

A

The fair presentation concept

B

?The accruals concept

C

The going concern concept

D

?The business entity concept

Which accounting concept should be considered if the owner of a business takes goods from inventory for his own personal

use?

A

The fair presentation concept

B

The accruals concept

C

?The going concern concept

D

The business entity concept

According to the IASB's Conceptual Framework for Financial Reporting, which TWO of the following are part of faithful

representation?1 It is neutral2 It is relevant3 It is presented fairly4 It is free from material error

A

1?and?2

B

2?and?3

C

?1?and?4

D

3?and4

Which of the following accounting concepts means that similar items should receive a similar accounting treatment?

A

Going concern

B

Accruals

C

Matching

D

Consistency

Listed below are some characteristics of financial information.1 Relevance2 Consistency3 Faithful representation4 Accuracy

Which of these are qualitative characteristics of financial information according to the IASB's Conceptual Framework for

Financial Reporting?

A

1 and 2 only

B

2 and 4 only

C

3 and 4 only

D

1 and 3 only

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