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Amazing group had property, plant and equipment with a book value of rs 3500000 on 31st December 2019 the balance in revaluation surplus on that date was rs 300000. As part of their practice of revaluing the assets on yearly basis, another revaluation was carried out on 31st December 2019 . Evaluate the impact of revaluation if the fair value as a result of revaluation done on 31st December 2019 was rs 3700000,rs 3300000, 3100000. Also give the journal entries?
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Amazing group had property, plant and equipment with a book value of r...
Impact of Revaluation on Property, Plant, and Equipment
Revaluation of property, plant, and equipment is a common practice followed by companies to reflect their fair value in the financial statements. In this case, Amazing group had property, plant, and equipment with a book value of Rs 3,500,000 on 31st December 2019. The balance in revaluation surplus on that date was Rs 300,000. Another revaluation was carried out on the same date, resulting in different fair values.
Impact of Revaluation
1. Fair Value: Rs 3,700,000
- The fair value of the property, plant, and equipment after revaluation was Rs 3,700,000. This means that the assets have increased in value by Rs 200,000 (Rs 3,700,000 - Rs 3,500,000).
2. Fair Value: Rs 3,300,000
- The fair value of the property, plant, and equipment after revaluation was Rs 3,300,000. This means that the assets have decreased in value by Rs 200,000 (Rs 3,500,000 - Rs 3,300,000).
3. Fair Value: Rs 3,100,000
- The fair value of the property, plant, and equipment after revaluation was Rs 3,100,000. This means that the assets have decreased in value by Rs 400,000 (Rs 3,500,000 - Rs 3,100,000).
Journal Entries
The following journal entries need to be recorded to reflect the impact of revaluation on the financial statements:
1. Revaluation Surplus
Debit: Revaluation Surplus (Increase in Revaluation Surplus)
Credit: Property, Plant, and Equipment (Increase in Fair Value)
Debit: Property, Plant, and Equipment (Decrease in Fair Value)
Credit: Revaluation Surplus (Decrease in Revaluation Surplus)
Explanation: The first journal entry records the increase in the fair value of property, plant, and equipment. The revaluation surplus account is debited to increase the balance, and the property, plant, and equipment account is credited to reflect the increase in value. The second journal entry records the decrease in fair value. The property, plant, and equipment account is debited, and the revaluation surplus account is credited to reduce the balance.
2. Accumulated Depreciation
Debit: Accumulated Depreciation (Increase in Depreciation Expense)
Credit: Revaluation Surplus (Increase in Revaluation Surplus)
Debit: Revaluation Surplus (Decrease in Revaluation Surplus)
Credit: Accumulated Depreciation (Decrease in Depreciation Expense)
Explanation: The first journal entry records the increase in the depreciation expense due to the increased fair value of the assets. The accumulated depreciation account is debited, and the revaluation surplus account is credited to reflect the increase. The second journal entry records the decrease in the depreciation expense due to the decreased fair value. The revaluation surplus account is debited, and the accumulated depreciation account is credited to reduce the balance
Revaluation of property, plant, and equipment is a common practice followed by companies to reflect their fair value in the financial statements. In this case, Amazing group had property, plant, and equipment with a book value of Rs 3,500,000 on 31st December 2019. The balance in revaluation surplus on that date was Rs 300,000. Another revaluation was carried out on the same date, resulting in different fair values.
Impact of Revaluation
1. Fair Value: Rs 3,700,000
- The fair value of the property, plant, and equipment after revaluation was Rs 3,700,000. This means that the assets have increased in value by Rs 200,000 (Rs 3,700,000 - Rs 3,500,000).
2. Fair Value: Rs 3,300,000
- The fair value of the property, plant, and equipment after revaluation was Rs 3,300,000. This means that the assets have decreased in value by Rs 200,000 (Rs 3,500,000 - Rs 3,300,000).
3. Fair Value: Rs 3,100,000
- The fair value of the property, plant, and equipment after revaluation was Rs 3,100,000. This means that the assets have decreased in value by Rs 400,000 (Rs 3,500,000 - Rs 3,100,000).
Journal Entries
The following journal entries need to be recorded to reflect the impact of revaluation on the financial statements:
1. Revaluation Surplus
Debit: Revaluation Surplus (Increase in Revaluation Surplus)
Credit: Property, Plant, and Equipment (Increase in Fair Value)
Debit: Property, Plant, and Equipment (Decrease in Fair Value)
Credit: Revaluation Surplus (Decrease in Revaluation Surplus)
Explanation: The first journal entry records the increase in the fair value of property, plant, and equipment. The revaluation surplus account is debited to increase the balance, and the property, plant, and equipment account is credited to reflect the increase in value. The second journal entry records the decrease in fair value. The property, plant, and equipment account is debited, and the revaluation surplus account is credited to reduce the balance.
2. Accumulated Depreciation
Debit: Accumulated Depreciation (Increase in Depreciation Expense)
Credit: Revaluation Surplus (Increase in Revaluation Surplus)
Debit: Revaluation Surplus (Decrease in Revaluation Surplus)
Credit: Accumulated Depreciation (Decrease in Depreciation Expense)
Explanation: The first journal entry records the increase in the depreciation expense due to the increased fair value of the assets. The accumulated depreciation account is debited, and the revaluation surplus account is credited to reflect the increase. The second journal entry records the decrease in the depreciation expense due to the decreased fair value. The revaluation surplus account is debited, and the accumulated depreciation account is credited to reduce the balance
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Amazing group had property, plant and equipment with a book value of rs 3500000 on 31st December 2019 the balance in revaluation surplus on that date was rs 300000. As part of their practice of revaluing the assets on yearly basis, another revaluation was carried out on 31st December 2019 . Evaluate the impact of revaluation if the fair value as a result of revaluation done on 31st December 2019 was rs 3700000,rs 3300000, 3100000. Also give the journal entries?
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Amazing group had property, plant and equipment with a book value of rs 3500000 on 31st December 2019 the balance in revaluation surplus on that date was rs 300000. As part of their practice of revaluing the assets on yearly basis, another revaluation was carried out on 31st December 2019 . Evaluate the impact of revaluation if the fair value as a result of revaluation done on 31st December 2019 was rs 3700000,rs 3300000, 3100000. Also give the journal entries? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Amazing group had property, plant and equipment with a book value of rs 3500000 on 31st December 2019 the balance in revaluation surplus on that date was rs 300000. As part of their practice of revaluing the assets on yearly basis, another revaluation was carried out on 31st December 2019 . Evaluate the impact of revaluation if the fair value as a result of revaluation done on 31st December 2019 was rs 3700000,rs 3300000, 3100000. Also give the journal entries? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Amazing group had property, plant and equipment with a book value of rs 3500000 on 31st December 2019 the balance in revaluation surplus on that date was rs 300000. As part of their practice of revaluing the assets on yearly basis, another revaluation was carried out on 31st December 2019 . Evaluate the impact of revaluation if the fair value as a result of revaluation done on 31st December 2019 was rs 3700000,rs 3300000, 3100000. Also give the journal entries?.
Amazing group had property, plant and equipment with a book value of rs 3500000 on 31st December 2019 the balance in revaluation surplus on that date was rs 300000. As part of their practice of revaluing the assets on yearly basis, another revaluation was carried out on 31st December 2019 . Evaluate the impact of revaluation if the fair value as a result of revaluation done on 31st December 2019 was rs 3700000,rs 3300000, 3100000. Also give the journal entries? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Amazing group had property, plant and equipment with a book value of rs 3500000 on 31st December 2019 the balance in revaluation surplus on that date was rs 300000. As part of their practice of revaluing the assets on yearly basis, another revaluation was carried out on 31st December 2019 . Evaluate the impact of revaluation if the fair value as a result of revaluation done on 31st December 2019 was rs 3700000,rs 3300000, 3100000. Also give the journal entries? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Amazing group had property, plant and equipment with a book value of rs 3500000 on 31st December 2019 the balance in revaluation surplus on that date was rs 300000. As part of their practice of revaluing the assets on yearly basis, another revaluation was carried out on 31st December 2019 . Evaluate the impact of revaluation if the fair value as a result of revaluation done on 31st December 2019 was rs 3700000,rs 3300000, 3100000. Also give the journal entries?.
Solutions for Amazing group had property, plant and equipment with a book value of rs 3500000 on 31st December 2019 the balance in revaluation surplus on that date was rs 300000. As part of their practice of revaluing the assets on yearly basis, another revaluation was carried out on 31st December 2019 . Evaluate the impact of revaluation if the fair value as a result of revaluation done on 31st December 2019 was rs 3700000,rs 3300000, 3100000. Also give the journal entries? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of Amazing group had property, plant and equipment with a book value of rs 3500000 on 31st December 2019 the balance in revaluation surplus on that date was rs 300000. As part of their practice of revaluing the assets on yearly basis, another revaluation was carried out on 31st December 2019 . Evaluate the impact of revaluation if the fair value as a result of revaluation done on 31st December 2019 was rs 3700000,rs 3300000, 3100000. Also give the journal entries? defined & explained in the simplest way possible. Besides giving the explanation of
Amazing group had property, plant and equipment with a book value of rs 3500000 on 31st December 2019 the balance in revaluation surplus on that date was rs 300000. As part of their practice of revaluing the assets on yearly basis, another revaluation was carried out on 31st December 2019 . Evaluate the impact of revaluation if the fair value as a result of revaluation done on 31st December 2019 was rs 3700000,rs 3300000, 3100000. Also give the journal entries?, a detailed solution for Amazing group had property, plant and equipment with a book value of rs 3500000 on 31st December 2019 the balance in revaluation surplus on that date was rs 300000. As part of their practice of revaluing the assets on yearly basis, another revaluation was carried out on 31st December 2019 . Evaluate the impact of revaluation if the fair value as a result of revaluation done on 31st December 2019 was rs 3700000,rs 3300000, 3100000. Also give the journal entries? has been provided alongside types of Amazing group had property, plant and equipment with a book value of rs 3500000 on 31st December 2019 the balance in revaluation surplus on that date was rs 300000. As part of their practice of revaluing the assets on yearly basis, another revaluation was carried out on 31st December 2019 . Evaluate the impact of revaluation if the fair value as a result of revaluation done on 31st December 2019 was rs 3700000,rs 3300000, 3100000. Also give the journal entries? theory, EduRev gives you an
ample number of questions to practice Amazing group had property, plant and equipment with a book value of rs 3500000 on 31st December 2019 the balance in revaluation surplus on that date was rs 300000. As part of their practice of revaluing the assets on yearly basis, another revaluation was carried out on 31st December 2019 . Evaluate the impact of revaluation if the fair value as a result of revaluation done on 31st December 2019 was rs 3700000,rs 3300000, 3100000. Also give the journal entries? tests, examples and also practice CA Foundation tests.
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