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Sir I have understood the concept of ravaluation of asset but i am unable to figure out solution of this question.
Asset was purchased at cost of $200000. Its accumulated depreciation after 3 years is 30000. After 3 year the market price is 190000.
Now the carrying value of asset is 170000 (200000-30000) so the amount that will go to revaluation surplus will be 20000 (190000-170000.)
What are the journal entries for this que :/
DR Revaluation account 10,000
CR Asset account 10,000DR Accumulated depreciation 30,000
CR Revaluation account 30,000DR Revaluation account 20,000
CR Revaluation reserve 20,000Are you watching the free lectures? If not, then you cannot expect me to keep typing out what is explained in my lectures!
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