- April 2, 2021 at 7:58 pm #6157877fsaParticipant
- Topics: 58
- Replies: 41
How are you?
I hope you are doing well,
First of all I would like to thank you for your effort and nice informative lectures,
regarding example#1 presentation of the financial statements it was as follow,
As you explained.
Statement of financial position
PPE (NCA) $89,412
Revaluation Reserves (Equity) $25,412
Profit or loss and other comprehensive income
Depreciation Expenses $5,588
Gain (OTI) $27,000
and you did explain for the Accounting journal entries as follow,
Dr Cost PPE $15,000
Dr Accumulated Depreciation $12,000
Cr Revaluation Reserve $17,000
Dr Depreciation Expense $5,588
Cr Accumulated Depreciation $5,588
Dr Revaluation Reserves $1,588
Cr Retained Earnings $1,588
I do understand all those journal entries but Those are related to the following tree items which are 1- PPE 2- Revaluation Reserves 3- Depreciation Expenses .
what about Revaluation Gain Accounting Journal entry how can I work it out to do recognize in Profit or loss and other comprehensive incomeApril 5, 2021 at 8:21 pm #616041P2-D2Keymaster
- Topics: 4
- Replies: 6473
The revaluation gain is included within the first journal entry where we credit the revaluation reserve/OCI with the $17,000. The accumulated depreciation is removed, cost increased and a gain included in OCI.
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