Treatment of Revaluation Surplus

Hi.. while revaluing the assets, how do we treat the revaluation surplus...

 

Please advise.

Replies (4)

If there is a revaluation surplus Cr. Baln in ur books of say Rs.1000 and the W.D.V. was Rs.500 and now has decreased to Rs.450 aftter revaluation then entry would be:

Revaluation A/c...Dr      50

To Fixed Asset A/c                50

(Revaln A/c Baln=500-50=450)

If there is a revaluation surplus Cr. Baln in ur books of say Rs.1000 and the W.D.V. was Rs.500 and now has incresed to Rs.600 aftter revaluation then entry would be:

Fixed Asset A/c Dr.... 100

To Revaluation A/c            100

(Revaln A/c Baln =500+100=600)

 

Regards,

 

I dont think so, i think a portion of revaluation surplus each year is transferred to Retained Earning (Revaluation Gains). This is i think as per IAS. i

I am not definite hence asking.

Agreed the portion of Revaluation surplus is transferred to retained earnings (which i have already mentioned in the reply, i.e. Revaluation Surplus has already a Credit Balance of Rs.500) in the books but the same cannot be used to declare Dividend ... It would be much more helpful if u could be much more clear and tell me what is wrong in the treatment i have given.... 

Regards,

The revaluation surplus is usually transfered to the retained earnings or to Reserves & surplus in the case of companies ie., the entry would be

Revaluation Surplus/profit A/c Dr.

Reserves and Surplus Cr.

In the case of partnership firms, the revaluation surplus is transfered to the partners' capital account.

Revaluation surplus/profit A/c Dr

Partners Capital Cr.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Topics :

Loading
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details