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On 1 January 2016, Sonny Ltd bought buildings for P540, 000. At that date it was decided that the buildings had a useful life of 50 years. On January 2018. It was decided to revalue the buildings to its open market value of P 600,000. On 31 December 2019, the property was sold for P620,000. No depreciation is charged in the year of disposal. a) Prepare a journal for the revaluation of the property on 1 January 2018. From (a) above, calculate profit or loss on the disposal of the property.

On 1 January 2016, Sonny Ltd bought buildings for P540, 000. At that date it was decided that the buildings had a useful life of 50 years. On January 2018. It was decided to revalue the buildings to its open market value of P 600,000. On 31 December 2019, the property was sold for P620,000. No depreciation is charged in the year of disposal. a) Prepare a journal for the revaluation of the property on 1 January 2018. From (a) above, calculate profit or loss on the disposal of the property.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On 1 January 2016, Sonny Ltd bought buildings for P540, 000. At that date it was decided that the buildings had a useful life of 50 years. On January 2018. It was decided to revalue the buildings to its open market value of P 600,000. On 31 December 2019, the property was sold for P620,000. No depreciation is charged in the year of disposal. a) Prepare a journal for the revaluation of the property on 1 January 2018. From (a) above, calculate profit or loss on the disposal of the property.
Transcribed Image Text:On 1 January 2016, Sonny Ltd bought buildings for P540, 000. At that date it was decided that the buildings had a useful life of 50 years. On January 2018. It was decided to revalue the buildings to its open market value of P 600,000. On 31 December 2019, the property was sold for P620,000. No depreciation is charged in the year of disposal. a) Prepare a journal for the revaluation of the property on 1 January 2018. From (a) above, calculate profit or loss on the disposal of the property.
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