Gce Model Questions Vol1 2024 Financial Accounting Question 26

Company XYZ has the following balances at year‑end (before adjustments): - Fixed assets (cost) £500,000; accumulated depreciation £120,000. - Inventory £80,000. - Trade receivables £70,000. - Cash £30,000. - Trade payables £60,000. - Loan notes £100,000 (8% interest, interest not yet paid). - Share capital £200,000. - Retained earnings (brought forward) £50,000. Additional information: 1. The company revalued its fixed assets upward by 10 % of the original cost, and the revaluation surplus is to be transferred to a revaluation reserve. 2. Depreciation is charged on the revalued amount at 5 % per annum, and the depreciation for the year has not yet been recorded. 3. The loan‑notes interest of £8,000 (8 % of £100,000) has been accrued but not yet paid. 4. The profit before any adjustments for the year is £172,500. 5. The company will distribute a dividend of £20,000, to be paid out of retained earnings after all adjustments. Prepare the statement of financial position as at year‑end and state the total shareholders' equity (share capital + retained earnings + revaluation reserve) after all adjustments.