Problem from AS-10

On 1-4-2008 B Ltd had sold some of its fixed assets for Rs.200 lakhs (written down value Rs.500 lakhs), these assets were revalued earlier.  As on 1-4-2008 the revaluation reserve corresponding to these assets stood at Rs.400 lakhs.  The profit on sale of property Rs.400 lakhs shown in the profit and loss statement represented the transfer of this amount.  Loss on sale of asset was included in the cost of goods sold.  Comment

I am not able to understand this problem.  Please help me to understand this question and solve it for me.

Thanks in advance