At 31 March 2019, Laertes Ltd had shareholders funds (equity) of 200,000 and debt of 100,000.

Which of the following transactions would increase Laertes gearing compared to what it would have been had the transaction NOT taken place? Gearing should be taken as debt/(debt + equity). Each transaction should be considered separately.

A During the year a property was revalued upwards by 20,000

B A bonus issue of equity shares of 1 for 4 was made during the year using other components of equity

C A provision for estimated damages was reduced during the year from 21,000 to 15,000 based on the most recent legal advice

D An asset with a fair value of 25,000 was acquired under a finance lease on 31 March 2019

The following information is relevant to the subscription income of Worsley Golf Club:

In arrears In advance

Subscriptions 1 April 2020 90 54

Subscriptions 31 March 2006 104 49

Subscriptions received in the year ended 31 March 2006 were 644.

What amount of subscription income would appear in the income statement for the year ended 31 March 2006?

625

735

663

639

The following information relates to an asset owned by Sitrine ltd

Cost	80,000
Accumulated depreciation	25,000

At the beginning of the current year, the asset was revalued upward to 100,000.

Which of the following is the correct journal entry to record the revaluation of the asset?

Dr Asset 20,000; Cr Revaluation reserve 20,000

Dr Asset 45,000: Cr Accumulated depreciation 25,000; Cr Revaluation reserve 20,000

Dr Asset 45,000; Cr Revaluation reserve 45,000

Dr Asset 20,000 Dr Accumulated depreciation 25,000; Cr Revaluation reserve 45,000

A machine acquired for 360,000 on 19^th April 2015 and depreciated annually at 10% of cost is sold for 240,000 on 18^th August 2019. A full years depreciation is charged in the year of acquisition and no depreciation in the year of disposal. What is the gain or loss on disposal in the year ending 31^st December 2019

120,000 loss

60,000 loss

24,000 gain

60,000 gain

A non-current asset was acquired on the 1st of January year 1 for 2,000 with an estimated useful economic life of 10 years with zero residual value at the end of this time. After two years depreciation charged, on the 1st January year 3 the useful economic life was estimated to be a remaining four years. On the 1st January year 4, the asset is valued at 1900. Which of the following are the correct accounting entries if the asset is to be recorded at the revaluation amount in the Balance Sheet (Statement of Financial Position):

Increase assets by 700, Increase revaluation surplus by 700

Increase assets by 700, Increase p & l account by 700

Increase assets by 500, Increase p & l account by 500

Increase assets by 500, Increase revaluation surplus by 500

Laertes Ltd paid 480,000 on 1st April 2017 to acquire a reputed brand name and decided to amortise the cost using the time-apportioned sum of the years digits method, estimating a five-year useful life. How much would it write off as amortisation of brand name in the year ended 31st December 2019?

128,000

64,000

72,000

104,000