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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Revaluation Surplus
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 10,000
DR Accumulated depreciation 30,000
CR Revaluation account 30,000
DR Revaluation account 20,000
CR Revaluation reserve 20,000
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