accounting treatment of depreciation

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rohit agarwal (Querist)
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14 May 2008 please provide me the accounting of depreciation on revalued assets
whether reduction is to be made on revuation reserve for dep on revalued assets etc.

CA Anuj Garg

CA Anuj Garg (Expert)
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14 May 2008 Accounting treatment of revalued assets shud be as per AS 10

Depreciation on increasd amount shud be written off from revaluation reserve and balance from P&L Account

For example:
Value: 1Lacs
Revalued Amount:1.50Lacs
Dep Rate: 10%

Accounting Entry:

Dep Dr 15000
Asset Cr 15000

P&L Dr 10000
Revl Res Dr 5000
Dep Cr 15000