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KLopp Question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › KLopp Question

Viewing 2 posts - 1 through 2 (of 2 total)
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  • October 5, 2021 at 11:21 am #637014
    munyaradzi9181
    Participant
    • Topics: 2
    • Replies: 0
    • ☆

    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

    October 6, 2021 at 8:46 pm #637167
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7171
    • ☆☆☆☆☆

    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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