10-29-2009, 12:35 AM
125000/8=15625 depreciation per year
depreciation for 3 years = 15625*3=46875
WDV after 3 years = 125000-46875 = 78125
revalued value = 70000
difference = 78125 - 70000 = 8125
8125 should be charged to p&l a/c if it is first time revalued no revaluation surpluse account already exist.
firstly charged the accumulated depreciation to asset
dr acumulated dep
cr asset
now
dr p&l a/c
cr asset
closing balance of the asset should be 70000
depreciation for 3 years = 15625*3=46875
WDV after 3 years = 125000-46875 = 78125
revalued value = 70000
difference = 78125 - 70000 = 8125
8125 should be charged to p&l a/c if it is first time revalued no revaluation surpluse account already exist.
firstly charged the accumulated depreciation to asset
dr acumulated dep
cr asset
now
dr p&l a/c
cr asset
closing balance of the asset should be 70000
