• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

BPP Black Friday sale! (28 Nov-1 Dec)

40% discount on all BPP books specially for OpenTuition students!
Get it here >>

PPE disposal journal entries

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › PPE disposal journal entries

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • November 29, 2020 at 3:50 am #596960
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    Derek purchased a property costing $750,000 on 1 January 20X4 with a useful life of 10 years. It has no residual value. At 31 December 20X4 the property was valued at $810,000 resulting in a gain on revaluation being recorded in other comprehensive income of $135,000. There was no change to its useful life. Derek does not make a transfer to realised profits in respect of excess depreciation on revalued assets. On 31 December 20X6 the property was sold for $900,000. Required: How should the disposal on the previously revalued asset be treated in the financial statements for the year ended 31 December 20X6?

    sir i understand that one of the journal entries to be passed would be,

    dr. revaluation surplus 135000 cr. retained earnings 135000

    but which other general entry do we pass to record for the rest of gain of 270000-135000= 135000? as the total gain is of 270,000 upon disposal.

    December 5, 2020 at 8:36 am #597711
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7212
    • ☆☆☆☆☆

    Hi,

    We would need to record the proceeds and remove the PPE at its carrying value. The difference in these amounts is then posted through profit or loss as the profit on disposal.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • kneegro on Introduction to IFRS 16 Leases – ACCA (SBR) lectures
  • tkhue3296 on CIMA B3 Introduction to Accounting
  • John Moffat on Risk and Uncertainty – Expected Values – CIMA P2
  • John Moffat on Discounted Cash Flow – Annuities and Perpetuities – ACCA Financial Management (FM)
  • Sarah461422 on Risk and Uncertainty – Expected Values – CIMA P2

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in