fixed asset revaluation accounting;
The following example includes all aspects of revaluation accounting.
Sharq Company bought 81 buildings for the amount of 1,000,000 Rials on April 1. The useful life of this building is 20 years and the straight line depreciation method. The information related to the revaluation of the building is as follows:
29 March 85 900,000
29 March 90 380,000
March 29, 1995, 360,000
Sharq Company sold 97 buildings for 190,000 Rials on March 29.
Desired: to complete all the necessary registrations
Bad building 1.000.000
Bank Bes 1,000,000
March 29, 1981 to March 29, 1985:
Bad depreciation expense 50.000
Accumulated depreciation is 50,000
1,000,000 ÷ 20=50,000
March 29, 1985:
Bad Accumulated Depreciation 250,000
The building is about 100,000
The revaluation surplus is 150,000
March 29, 1986 to March 29, 1990:
Bad depreciation expense 60.000
Accumulated depreciation is 60,000
900,000 ÷ 15=60,000
Bad revaluation surplus 10.000
Accumulated profit is 10.000
150,000 ÷ 15=10,000
March 29, 1990:
Bad Accumulated Depreciation 300.000
Bad revaluation surplus 100.000
Bad depreciation expense 120.000
The building is 520,000
From March 29, 1991 to March 29, 1995:
Bad depreciation expense 38.000
Accumulated depreciation is 38,000
380,000 ÷ 10=38,000
March 29, 1995:
Bad Accumulated Depreciation 190,000
The building is about 20,000
Depreciation return income is 120,000
Revaluation surplus is 50,000
March 29, 1996 to March 29, 1997:
Bad depreciation expense 72.000
Accumulated depreciation is 72,000
360,000 ÷ 5=72,000
Bad revaluation surplus 10.000
Accumulated profit is 10.000
50,000 ÷ 5=10,000
March 29, 1997:
Bad bank 190.000
Bad Accumulated Depreciation 144.000
Bad revaluation surplus 30.000
Loss from bad sales 26.000
The building is about 360,000
Accumulated interest is 30,000
More information, paragraphs 29 to 42 of standard 11
Mehdi Koh Soltani (financial services, accounting, financial and tax consultant):
Link to the audit accounting clinic
https://t.me/joinchat/BnzBsTuioTshiXBwf9bBPQ
This post is written by Mahdi_kohsoltani