Fixed Assets on 1.4.2011 is 1000000
on 30.6.2011 Revaluation on Fixed Assets : 200000
Assets Is sold on 30.9.2011. for 1400000.
what is treatment of Revaluation Reserve of 200000?
Basavanna v
(Article)
(35 Points)
Replied 20 April 2012
if u maintained revaluation reserve A/c 200000 should transfered to reserve a/c otherwise to the extent of 200000 transfered pand l a/c
CA Sachin Rastogi
(Audit/IFRS Manager)
(338 Points)
Replied 22 April 2012
Recycle the revaluation reserve to P&L in the same line in which the gain or loss on disposal of fixed asset is booked.
anveshgupta
(Student)
(94 Points)
Replied 27 April 2012
transfer the whole amount to p&l a/c then calculate gain /loss on sale of asset ORdifference in loss/gain of sale of aseet and revaled amount to p&l a/c
Sonu Kumar
(Account Manager)
(665 Points)
Replied 27 April 2012
No Journal Entry Will be Passed on Revaluation of Assets but At the Time of Sale Following Journal May Be Passed,
Bank A/c - Dr 1400000
Fixed Assets A/c Cr 1000000
P/L A/c Cr 400000
frank
(owner)
(131 Points)
Replied 29 April 2012
What about depreciation from 01-04-2011 to 30-09-2011? It has to be considered when the asset is sold.
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