Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Revaluation Question
- This topic has 1 reply, 2 voices, and was last updated 2 months ago by John Moffat.
- March 16, 2023 at 7:01 pm #681429SamirB28Participant
- Topics: 4
- Replies: 4
Herath Construction Ltd has a piece of land on the company’s books valued at £800,000. Five years ago, a boom in land values led the company to increase the carrying value to £880,000. In recent times, however, there’s been a decline in land prices and it is estimated by a surveyor that the land is now worth only £770,000. How should the values be accounted for at the end of the current year?
a) Dr revaluation surplus £110,000; Cr non-current asset £110,000
b) Dr income statement £30,000; Cr non-current asset £30,000
c) Dr revaluation surplus £80,000; Cr income statement £50,000; Cr non-current asset £30,000
d) Dr revaluation surplus £80,000; Dr income statement £30,000; Cr non-current asset £110,000
Is the answer D? If so can you demonstrate the calculations?
Thank you in advanced.March 17, 2023 at 10:39 am #681462John MoffatKeymaster
- Topics: 56
- Replies: 52540
Why are you attempting a question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers – they have answers and explanations.
However this is not examinable in Paper MA – it is a financial accounting question.
- You must be logged in to reply to this topic.