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“Q1. original cost (OC) of land =15000
revalued upto in 2nd yr = 20000
3rd year =17000
so journal entry for this is
Dr revaluation surplus 5000
dr loss on revaluation 2000
Cr asset 7000”Year 2 – Dr Asset 5,000 Cr Revaluation Reserve 5,000
Year 3 – Dr Revaluation Reserve 3,000 Cr Asset 3,000“we will take 5000 in SOCIE and in comprehensive income . and debited 2000 in P/l account.sir am I correct?” – No, you’re not correct. In year 2 we will show the gain in Other Comprehensive Income and in Statement of Changes in Equity but nowhere is there an entry into Statement of Profit or Loss
“2.in the same way when original cost is 15000 and revaluation amounts are 13000 and 20000 respectively, journal entry is
drAsset 7000
cr revaluation surplus 5000
gain on revaluation 2000here we will take 5000 in SOCIE and OCI and again credit 2000 in P/l account.”
No – it’s really time that you went to the F3 videos and learned about debits and credits!
Year 2 Dr Profit or Loss 2,000 Cr Asset 2,000
Year 3 Cr Profit or Loss 2,000 Cr Revaluation Reserve 5,000 Dr Asset 7,000“3rd question.
original cost = 15000
2nd year =25000
3rd year=23000”Year 2 Dr Asset 10,000 Cr Revaluation Reserve 10,000
Year 3 Dr Revaluation Reserve 2,000 Cr Asset 2,000Anything going through Revaluation Reserve will also go through Other Comprehensive Income
Now for the really important part of your post …..
“I am exempted from F3 so I don’t know even the simplest concepts. I am sorry for asking repeatedly same questions”
SO HOW ON EARTH DID YOU GET EXEMPTED? THE IDEA OF AN EXEMPTION IS THAT YOU DON’T HAVE TO GO THROUGH AGAIN STUFF THAT YOU LEARNED AT UNIVERSITY
Seriously, go and spend some time (it’s an investment for the future) following John’s F3 lectures and course notes
I have been off from my studies for many years so i am struggling even for these simple concepts.
1.Year 2 – Dr Asset 5,000 Cr Revaluation Reserve 5,000
Year 3 – Dr Revaluation Reserve 3,000 Cr Asset 3,000“we will take 5000 in SOCIE and in comprehensive income . and debited 2000 in P/l account.sir am I correct?” – No, you’re not correct. In year 2 we will show the gain in Other Comprehensive Income and in Statement of Changes in Equity but nowhere is there an entry into Statement of Profit or Loss.
so in year 3, where do we take 3000? it is loss on revaluation. so we deduct 3000 in other comprehensive income from 5000 and SOCIE , am i correct?
“3rd question.
original cost = 15000
2nd year =25000
3rd year=23000”Year 2 Dr Asset 10,000 Cr Revaluation Reserve 10,000
Year 3 Dr Revaluation Reserve 2,000 Cr Asset 2,000
don’t we have combined journal entry for this question like we have in 1st question?And yes thank you for answering my questions.
Sasha, what on earth are you talking about? “don’t we have combined journal entry for this question like we have in 1st question?”
What do you mean, a combined journal entry?
I’ve given you the precise journal entries for the end of year 2 and the end of year 3 for your three examples. Why are you trying to change them?
Q1. original cost (OC) of land =15000
revalued upto in 2nd yr = 20000
3rd year =17000
so journal entry for this is
Dr revaluation surplus 5000
dr loss on revaluation 2000
Cr asset 7000”3rd question.
original cost = 15000
2nd year =25000
3rd year=23000”… I was trying to say journal entry like above.
year 2 and year 3 journal entry is clear for me.no problem. I was asking do we need to make journal entry like above for this question also.Sasha, I despair!
My post timed at 6.57am today said:
“Year 2 – Dr Asset 5,000 Cr Revaluation Reserve 5,000
Year 3 – Dr Revaluation Reserve 3,000 Cr Asset 3,000”THOSE ARE THE JOURNAL ENTRIES for question 1
Please, stop trying to change them!
Your comment in this most recent post from you ….
“so journal entry for this is
Dr revaluation surplus 5000
dr loss on revaluation 2000
Cr asset 7000”…. is total nonsense. This is not even F3 level …. you’re sinking to the level of GCSE (and lower!)
The journal entries for the third example are as I have already posted! But here they are again ….
Year 2 Dr Asset 10,000 Cr Revaluation Reserve 10,000
Year 3 Dr Revaluation Reserve 2,000 Cr Asset 2,000Now Sasha please, please, please stop trying to change these journal entries that I’m giving you!
Every time you start a post with “So ……… ” and finish with “Am I correct?” the answer is “NO, you’re not correct unless you have copied and pasted the journal entries that I keep telling you”
Go to F3! Make a point of it! Just do it! And recommend to all your friends NOT to take advantage of any exemptions from the F2 and F3 papers.
I’m really really sorry sir for fore mentioned queries. I am not the one who posted above queries repeatedly. Me and my two friends use this account. I know you were cheesed off. sorry for those irritating and annoying queries. If I were I would have stopped replying it instead of answering them.
I am not exempted from F3 .Also,I am done with f6 and f5 papers. So,hopefully you will not have to waste your precious time on a stupid questions 😀
I am sorry you wasted your valuable time on answering those unwanted questions. I’ll assure you it won’t be repeated from next time. From now I am the only one using this account.
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