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What are the Accounting entries when original cost of an asset is $ 1,600. Asset is fully depreciated. Revaluation is done (policy allows) and new book value is $ 800.
They are the same entries as for any revaluation (as explained in my free lectures).
Dr Revaluation account
Cr Asset account
With 800, to reduce the cost to the revalued amountDr Accumulated depreciation
Cr Revaluation account
With 1,600, to remove the accumulated depreciation.The balance of 800 on the revaluation account is the surplus on revaluation which is transferred to the Revaluation Reserve.
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