A-LevelAccountingAccounting for non-current assets9706/12 · May/June 2012 · Q31 Mark
A non-current asset costing $206 000, with a net book value of $131 000, is revalued to $275 000. How should the revaluation be recorded?
ADr Asset at cost $69 000
Cr Revaluation reserve $69 000
BDr Provision for depreciation $75 000
Dr Asset at cost $69 000
Cr Revaluation reserve $144 000
CDr Provision for depreciation $144 000
Cr Revaluation reserve $144 000
DDr Revaluation reserve $144 000
Cr Asset at cost $69 000
Cr Provision for depreciation $75 000
✓ Correct answer
B: Dr Provision for depreciation $75 000 Dr Asset at cost $69 000 Cr Revaluation reserve $144 000
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