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Problem 43 The annual accounts of Sen Manufacturing Ltd. are being prepared for the year ended 31 March 2019 and the closing trial balance includes the following figures: Freehold land and factory buildings 2,800,000 Depreciation of factory buildings at 01.04.18 750,000 Land revaluation reserve 400,000 Plant and machinery at cost 1.900.000 Depreciation of plant and machinery at 01.04.18 1,150,000 Motor vehicles at cost 153,000 Depreciation of motor vehicles at 01.04.18 36,000 The following information has been supplied: (1) The figure for freehold land and factory buildings comprises land at valuation (E1.200,000) and buildings at cost (1,600,000). The land originally cost 800,000 and was professionally revalued in 2007 and the revaluation reserve created. It was revalued again in March 2019 and the revised figure of 1,450,000 is to be included in the accounts. (2) Factory buildings include expenditure in 2018 on constructing a new warehouse (220,000), maintenance of buildings (60,000) and redecoration (20.000). (3) Factory buildings owned at 31 March 2019 are to be depreciated for the year at % of oost (4) Plant and machinery also includes E450,000 being the cost of a machine purchased some years ago. It had a written down value at 1 April 2018 of 40,000 and was sold on the following day for 30,000. The proceeds have been debited to cash and credited in error to sundry income account. No adjustment has been made yet to correct this error (5) All plant and machinery owned at 31 March 2019 is to be depreciated for the year at 20% of cost. (6) The figure for motor vehicles includes 9,000 paid to Speedy Motors for a new vehicle costing 17.800 from which was deducted 8.800 for an old vehicle taken in part exchange, The old vehicle cost 23.000 in April 2015 and three years' depreciation, using the decreasing balance method and an annual rate of 30%, is included in the depreciation figure in the trial balance (7) All motor vehicles owned at 31 March 2019 are to be charged depreciation at the rate 30% using the decreasing-balance method. Required: (a) Prepare a table with eight columns using a separate column for each of the sevent balances shown in the trial balance extract and head the final column "Profit". For each item numbered trom (1) to (8) above, show on the table which of the seven balances needs correcting, and bow [+ or -), and show the correct balances at 31 March 2019. For each adjustment, show in the final column by how much the figure of profit for the year will be affected for) to Prepare the non-current asset section of Sen Manufacturing Ltd's statement of financial position 3 March 2019 in good style Your swer to the following questions put to you by college What is the purpose of having a land revaluation reserve? Why haven't the other worm then revalued

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