Durzo, an entity, has the following building in its FS at 30 june 2008:
Cost - $2,400,000
Accumulated dep - $600,000
Net book value - $1800,000
It has been decided to revalue the property to $3,600,000 on 1 July 2008.
What is the double entry to record the above revaluation?
ACCA Forums
FADouble entry
DR: Building (Asset) $ 1,800,000
CR: Revaluation Reserve (Equity) $ 1,800,000
(Being revaluation of asset)
@dizzycats said: DR: Building (Asset) $ 1,800,000 CR: Revaluation Reserve (Equity) $ 1,800,000 (Being revaluation of asset)Dizzy Cats,.. Wouldn't the double entry be like: Dr: Building 1,200,000 Dr: Accumulated Dep 600,000 Cr: Revaluation Reserve 1,800,000 Revaluation gain amount of 1,800,000 is arrived by deducting the revalued amount of 3,600.000 from NBV of 1,800,000 = 1,800,000 Revaluation gain. It can also be calculated as 3,600,000 - 2,400,000 (being the cost difference) plus the accumulated depreciation of 600,000 = 1,800,000 Debiting the Asset account with 1,800,000 would increase the asset balance to 2,400,000 + 1,800,000 = 4,200,000 and I believe that is wrong!
Got it Nishan .. Thnks thats the answer in the Buk :)
:)
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