In the 30 June 2020 annual report of Smith Ltd, the building was reported as follows:Building (at cost)Accumulated depreciationOThe building is depreciated on a straight-line basis over a 10-year period. The company usedrevaluation model for the building. The company finds out that the building has a fair value of$140,000 at 30 June 2020. On 30 June 2021, the fair value of building is assessed to be $92,500.Asset Revaluation Surplus (OCI)Loss on Revaluation (P/L)BuildingWhich journal entries are correct to revalue the asset in accordance with AASB 116 Property, Plantand Equipment at 30 June 2021?BuildingGain on Revaluation (P/L)$ 150 000Loss on Revaluation (P/L)Building(30 000)Asset Revaluation Surplus (OCI)Loss on Revaluation (P/L)Building120 000DR20,00027,500DR7,500DR30,000DR20,00010,000CR47,500CR7,500CR30,000CR30,000

Revaluation is the valuation which is made by the company usually on the assets which makes the…

Answered: Which journal entries are correct to…

Which journal entries are correct to revalue the asset in accordance with AASB 116 Property, Plant and Equipment at 30 June 2021?

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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