Revaulation of fixed assets

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CA MONIKA GOENKA (Querist)
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31 May 2012 at the time of revaluation of fixed assets say Building, whether the depreciation fund also have to revalued with the same % of increase...i.e. additional depreciation is cr. to the depreciation fund account at the time of revaluation...and if yes until what date such depreciation fund have to be revalued??

Soumitra Basu

Soumitra Basu (Expert)
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01 June 2012 You have to increase the value of the Building by the revaluation amount and credit the Revaluation Reserve Account. Each year the proportionate amount of depreciation on Revalued Figure should be credited to Profit & Loss Account and debited to Revaluation Reserve account.

CA MONIKA GOENKA

CA MONIKA GOENKA (Querist)
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01 June 2012 so where the depreciation fund is created we have to transfer the amount from revaluation reserve to depreciation fund account...is it correct?

Soumitra Basu

Soumitra Basu (Expert)
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01 June 2012 Yes if there is a depreciation fund, your accounting entry is correct

CA MONIKA GOENKA

CA MONIKA GOENKA (Querist)
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02 June 2012 Thank you

CA MONIKA GOENKA

CA MONIKA GOENKA (Querist)
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04 June 2012 again I want to ask that where the revaluation was take place at HO for the assets of the subsidiary,then whether the depreciation fund also have to be revalued-in subsidiary there is no revaluation reserve account till date then what will be the scenario?

CA MONIKA GOENKA

CA MONIKA GOENKA (Querist)
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