[bennetmathew]

sir one doubt

The following trial balance extract relates to a property which is owned by Veeton as at 1 April 2014:
Dr Cr $’000 $’000 Property at cost (20 year original life)12,000
Accumulated depreciation as at 1 April 2014 3,600

On 1 October 2014, following a sustained increase in property prices, Veeton revalued its property to $10·8 million.
What will be the depreciation charge in Veeton’s statement of profit or loss for the year ended 31 March 2015?
A $540,000 B $570,000 C $700,000 D $800,000

sir I did not understand the solution :

Six months’ depreciation to the date of the revaluation will be $300,000 (12,000/20 years x 6/12);
”six months’ depreciation from the date of revaluation to 31 March 2015 would be $400,000 (10,800/13·5 years remaining life x 6/12)”.
sir i did not understand this 2nd one calculation.

Total depreciation is $700,000.

”six months’ depreciation from the date of revaluation to 31 March 2015 would beal sir i did not understand this calculation.

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