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Some help please - On Financial Statements

chelvinchelvin New MemberRegistered Posts: 12
I need some help, i am doing finance tech course i have some homework to do but i am stuck.

I have to do a financial statement.

The Trail Balance show:
Non current assess - cost - £37,524
Non Current assess - accumulated depreciation - £12,683

The question is:
Land & Building included in non-current assets as a net book vaule of £8,000,000 are to be evalued at the end of the year at £9,000,000.

What do i do with this?

Someone please help.

Comments

  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    You need to do a journal to bring the asset up to its revalued amount as follows:

    Debit land and buildings £1,000,000
    Credit revaluation reserve £1,000,000

    Kind regards
    Steve
  • karenvkarenv Well-Known Registered Posts: 114
    I think you need to debit non current assets with the amount of the increase in value. debit accumulated depreciation with the amount of depreciation applicable to date, and open a revaluation reserve account entering a credit for the total of the increase in value and the depreciation to date.
  • chelvinchelvin New Member Registered Posts: 12
    Thanks for that.
    I am so stuck on this exercise i really dont know what i am doing :001_unsure:
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