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Chapter 6, Example 5

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Chapter 6, Example 5

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
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  • December 7, 2018 at 12:07 pm #488210
    qilianm
    Participant
    • Topics: 22
    • Replies: 12
    • ☆

    Good afternoon John, I have a question about the Revaluation A/C in Chapter 6, example 5.

    I have gone through the answer for this example from the notes and I was wondering why the Depreciation value for (W2) is not included in the Revaluation A/C, which will certainly affect the final profit or loss figure for this. Thank you.

    December 8, 2018 at 9:05 am #488415
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    The accumulated depreciation has gone to the revaluation account as part of the calculation of the gain on revaluation.

    From then on, when there is more depreciation is appears in the SOPL as normal.

    Have you watched the free lecture on this?

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