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KLopp Question

Mmunyaradzi4y ago
Good day Sir I am failing to understand why the 20 000 was added to retained earnings . I thought it is suppose to have a diminishing effect on retained earnings. Or am i getting something wrong? Regards
P2-D2P2-D2Tutor4y ago#1
Hi, I think you are getting the transfer confused. The transfer takes the revaluation surplus and transfers it to the retained earnings. This will mean that the surplus will decrease and the retained earnings will increase for the excess depreciation. Thanks
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