Question

b) Liverpool plc has the following land and building in its financial statements as of 30 June 2017. £ 1,000,000 900,000 800,000 Accumulated depreciation for building (100,000) 2,600,000 Residential land Factory land Building Total: At 30 June 2017, the balance of the revaluation surplus is £400,000, of which £300,000 relates to the factory land and the £100,000 to the buildings. No revaluation loss has been recognised. On this same date, independent valuations of the land and building are obtained. In relation to the above assets, the assessed fair values at 30 June 2017 are: Residential land £1,100,000 700,000 900,000 Factory land Building REQUIRED Provide journal entries to account for the revaluation on 30 June 2017. Liverpool plc classifies the residential land and the factory land as different classes of assets, and it uses the revaluation method for all property, plant and equipment.

Answer 1

200,000 Journal entrice in the books of liverpool PLC. " Debit credit (in £ ) Kom £2 Fast and Angelo Building Account Dr . To Rovaluation account 200,000 ing value of Building increased due to Revaluation profit). Fachry hand Accout To levaluahou accouf 100,000 100,000 100000 100000 Residential land Arout Po Revaluation account Reuduction propt ascestinal to assels ) Nok a In Factory and it is already 200,000 more than fair market value there for only 100,000 will take as cs skenaleshorn profita CamScanner