On 1 January 2021, Tymba plc has a building with a carrying value of £500,000 which was purchased on 31 December 2010. The company use revaluation model to subsequently measure the building. Depreciation is charged based on straight line method over 50 years. The building were revalued on 30 May 2021 and it had a fair value of £650,000. Tymba plc makes an annual transfer between the revaluation reserves and retained earnings in accordance with best practice. What is the amount of annual transfer on 31 December 2021?

On 1 January 2021, Tymba plc has a building with a carrying value of £500,000 which was purchased on 31 December 2010. The company use revaluation model to subsequently measure the building. Depreciation is charged based on straight line method over 50 years. The building were revalued on 30 May 2021 and it had a fair value of £650,000. Tymba plc makes an annual transfer between the revaluation reserves and retained earnings in accordance with best practice. What is the amount of annual transfer on 31 December 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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