KLopp Question

This topic has 1 reply, 2 voices, and was last updated 4 years ago by P2-D2.

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October 5, 2021 at 11:21 am #637014
munyaradzi9181
Participant
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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
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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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