Gce Model Questions Vol1 2022 Financial Accounting Question 16

Company A prepared its trial balance for the year ended 31 December 2022. The following items are shown (all figures in \(\text{₦}\)): Share capital \(500,000\); Revaluation surplus \(120,000\); Opening retained earnings \(80,000\); Net profit before tax (excluding depreciation) \(150,000\); Tax rate \(30\%\); Plant and machinery cost \(300,000\); Accumulated depreciation at the start of the year \(90,000\); Residual value of the plant \(30,000\); Useful life \(10\) years; The plant has been in use for 5 years at the start of the year. No disposals occurred during the year. The depreciation policy requires that at the end of each year the accumulated depreciation must equal \((\text{Cost} - \text{Residual}) \times (\text{Years elapsed} / \text{Useful life})\). Determine the total equity shown in the statement of financial position after all adjustments.