Q1

Q2

The following trial balance was extracted from the books and records of Jupiter Limited as at 31 December 2021. Additional Information 1. Inventory on hand at 31 December 2021 is valued at 250,000 in accordance with IAS 2 lencriories. 2. Land is to be fevalued to $500,000 at 31 December 2021. 1. Depreciation for the year ended 31 December 2021 is to be charged as follows: - Buildings 2% straight line; - Equipment - 10% straight line; and - Vehicles 25% reducing balance. Buildings and equipment are used 50% for cost of sales, 25% for selling and distribution and 25% for administrative, with vehicles being used solely for selling and distribution. 4. The directors of Jupiter Limited believe that an allowance for irrecoverable debts of 10% is appropriate at 31 December 2021. 5. The tax liability for the year ended 31 December 2021 is estimated to be 25,000. 6. Debenture interest and preference dividends due in respect of the year ended 31 December 2021 remained unpeid at the reporting date. 7. During the year ended December 2021, Jupiter Limited made an issue of its 60.50 nominal value ordinary shares, receiving f1.70 per share. The proceeds of the issue were debited to the company's bank account and credited to a share issue account. These new shares did not rank for dividend at 31 December 2021. 1. An ordinary dividend of 4 pence per ordinary share in respect of the year ended 31 December 2021 was approved by the sharebolders of Jupiter Limited prior to the reporting date. What is the gain on revaluation of land to be included in Jupiter Limited's statement of profit or loss and other comprehensive income (i.e. in other comprehensive income) for the year ended 31 December 2021? 500,000 125,000 250,000 375,000 What is the revaluation surplus (or revaluation reserve) to be included in Jupiter Limited's statement of financial position as at 31 December 2021? 125,000 875,000 375,000 500,000