Shuswap
Exam focus point. This question provides excellent practise of the knowledge and skills required to tackle long questions that may appear in Section B of the paper-based exam. However, the question is slightly longer, and the mark allocations lower, than a typical 15 mark exam question. Use this question to practise the techniques required to score well in longer Section B financial statement questions.
he draft statement of financial position shown below has been prepared for Shuswap, a limited liability company, as at 31
December 20X4：
The following further information is available:
1 It has been decided to revalue the land and buildings to $12,000,000 at 31 December 20X4.
2 Trade receivables totalling $200,000 are to be written off.
3 During the year there was a contra settlement of $106,000 in which an amount due to a supplier was set off against the amount due from the same company for goods sold to it. No entry has yet been made to record the set-off.
4 Some inventory items included in the draft statement of financial position at cost $500,000 were sold after the reporting date for $400,000, with selling expenses of $40,000.
5 The suspense account is made up of two items：
【简答题】
The proceeds of issue of 4,000,000 50c shares at $1.10 per share, credited to the suspense account from the cash book.
