[Nikolai]

So you can only deduct revaluation surplus of item b if there was a loss in revaluation in Item b?
You cannot deduct the revaluation surplus from loss in revaluation of other types of assets ?
For example if you have a gain in revaluation of a building and a loss in revaluation in a machinery you cannot deduct it :

Dr Property
Cr Revaluation

Dr Revaluation
Cr Machinery

Thanks

[Nikolai]

sorry 4

[Nikolai]

Also I need to ask you about question 6 of the same paper June 2014 in section b the loss in revaluation of item A is charged in the p/l. Why was it not deducted from the gain in revaluation of item B leaving a revaluation surplus of 32000-20000= 12000 instead of charging it to the p/l ?

[Nikolai]

Oh i see because usually closing stock is not written in the trial balance but written as a note. So closing inventory is written in the trial balance because it is already deducted from the cost of sales leaving a debit balance which goes in current assets.

Thanks very much !

[Nikolai]

the closing inventory is 61000,

it is not deducted i think because maybe the inventory belongs to Francais. Xtol is the agent as said in note 1

to arrive at cost of sales you need to add opening stock and purchases and deduct closing stock.

[Author]

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