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On 1 April 20X8 the fair value of Xu’s property was $100,000 with a remaining life of 20 years. Xu’s policy is to revalue its property at each year end. At 31 March 20X9 the property was valued at $86,000. The balance on the revaluation surplus at 1 April 20X8 was $20,000 which
relates entirely to the property. Xu does not make a transfer to realised profit in respect of excess
depreciation.
Required:
A)Prepare extracts of Xu’s financial statements for the year ended 31 March 20X9 reflecting the above information.
B)State how the accounting would be different if the opening revaluation surplus did not exist.Hi,
I’m not here to just answer full questions for students. I like to see you having attempted the question first or specifically say what you’re struggling with. I can then look to help you understand where you may have gone wrong.
I look forward to hearing back from you so I can help further.
Thanks
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