Revaluation of Fixed Assets On 1 January 2002 McGrath Ltd - Leaving Cert Accounting - Question 3 - 2007

Ledger Accounts

Land and Buildings Account

1. Opening Balance (01/01/2002): €670,000
2. Revaluation (01/01/2002): +€140,000
3. Balance c/d (31/12/2002): Calculated as total after revaluation and sales.
   • Disposal (01/01/2003): -€290,000 (sold land)
4. Balance c/d (31/12/2003): To be evaluated after revaluation and disposals, report total after sales.

Provision for Depreciation on Buildings Account

1. Opening Balance (01/01/2002): €68,800
2. Yearly Depreciation: At 2% apply on €430,000 buildings for each year – adjust total each year.
3. Balance c/d: Total depreciation accumulated as of the balance sheet date.

Disposal of Land Account

1. Disposal (01/01/2003): €290,000 recorded yield from sale.
   • This will impact Land and Buildings and Profit & Loss accounts.

Revenue Reserve Account

1. Balance (As of 01/01/2003): Add any revaluation amounts and retained profits.

Calculating Final Account Balances

• Build up figures from the transactions recorded.
• Preserve each transition on their respective dates for accuracy.

Summary of Key Account Figures

• Provide totals on the balance sheet covering 31/12/2006 for fixed assets, capital, and reserves.