Asset revaluation debit/credit entries

This topic has 1 reply, 2 voices, and was last updated 7 years ago by MikeLittle.

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May 12, 2018 at 9:37 am #451455
myacca1990
Participant
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Dr Noncurrent
assets cost/valuation
(revalued amount – cost)
Dr Accumulated depreciation
(eliminate all of existing provision)
Cr Revaluation surplus/Other Comprehensive Income
To every debit entry there is a corresponding credit entry.So i do understand when the asset gets revalued the non current assets increases and revaluation surplus increases as well.
But as we can see above the whats the corresponding credit entry for accumulated depreciation ?
May 12, 2018 at 10:54 am #451464
MikeLittle
Keymaster
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The rule “Every debit has a credit” does not necessarily mean one-for-one
An asset with a cost of $800 and accumulated depreciation of $300 is revalued to $900
The entries would be:
Dr Accumulated Depreciation $300
Dr Asset Account $100
Cr Revaluation Reserve $400
OK?
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