Interested to Buy Any Domain ? << Click Here >> for more details...
Answer Posted / kafeel
Revaluaton Entry for Fixed assets affects two aspects :
1. Fixed Assets (Debit )
2. Reserve on revaluation on fixed assets.(on face of
liability side of Balance sheet) (credit)
Important Points
1) The increase in value of fixed assets because of
revaluation of fixed assets is credited to ‘Revaluation
Reserve’, and is not available for distribution as
dividend. Revaluation Reserve is treated as a Capital
Reserve.
2) The increase in depreciation arising out of revaluation
of fixed assets is debited to depreciation expense.
4) When any asset, which is revalued, is sold, the part of
loss resulting due to revaluation is debited to
the ‘Revaluation Reserve’.
5) When assets are revalued, every Balance Sheet shall show
for a specified period of years, the amount of increase /
decrease made in respect of each class of assets.
Similarly, the increased / decreased value shall be shown
in place of the original cost.
6) In case of assets such as land and buildings,
revaluation is desirable as their value increases over time
and is carried out every 3 to 5 years. In case of plant &
machinery, revaluation is carried out only if there is a
strong case for it. In case of assets such as vehicles,
furniture & fittings, office equipments etc., revaluation
is not carried out.
7) Revaluation should not result in the net book value of
an asset exceeding its recoverable value.
8) Revaluation does not mean only an upward revision in the
book values of the asset. It can also mean a downward
revision (also called impairment) in the book values of the
assets. However, any downward revision in the book values
of the assets is immediately written off to the Profit &
Loss account.
9) On upward revaluation of a fixed asset, which has been
previously subject to downward revaluation, the amount of
upward revaluation as is equal to the amount expensed
previously is credited to the Profit & Loss a/c.
| Is This Answer Correct ? | 21 Yes | 5 No |
Post New Answer View All Answers
honararium for the month of march 2013 can be paid on 31 mar 2013
distinguish between Bill of Exchange and Promissory Note
Example for extra ordinary expenditure?
how do you prepare the mis reports and prepare the one example report stating your accounts department proforma
Paid office electricity charges Rs 15000/- and Ram partners residence electricity charges 1250 thr andhra bank cheque
Dear sir, I have complete B.com in march 2007, for past 4year i am doing some marketing jobs in insurance sector, now i need to change my job in accounting sector, i have heard that by doing SAP Fico there will be better opurtunity in corporate companies.
Under the accrual basis of accounting incomes are recognised at the time -------------------
someone plz plz plzz.. send me the sample papers for SBI clerical xams... i need it very badly..
I am maintaing books of accounts a Software Co. Kindly advise me Account Head of these exps. (Software Exps.,Internet Exps., Video Exps.,Server Maint.Exps.,& SMS Exps.,) Thanks
What is 100% EOu? what is the benifit and what is difficulty of it?
How does the ration analysis help in depicting profit and loss
selling price = shs. 200, variable overhead-selling per unit= shs 80, variable production cost per unit = shs 60, fixed selling cost = 2,840,000. the production capacity of the project is 200,000 units. required P/V ratio, BEP and margin of safety
With a 600 credit score, how to improve my credit rating score?
You use the accounts approach for parallel valuation in a new G/L system. If you used the ledger approach instead. Which objects would be different? ( any 3 answer) Chart of accounts Financial statement version Depreciation areas Asset classes Leading ledger
difference betwwen the 4.6 & 4.7 ecc versions
