I would like to know what is the proper accounting effect in case of revaluation of an asset ie: depreciation aspect in case of companies act provisions & also in case of income tax provisions .Also i would like to know how it should be presesnted in income tax schedule of income tax?
please provide your solutions & your interpretations.thx in advance.......
In cae of revaluation of assets if there is an increase in the Book Value of the asset then th following entry is required to be passed in the books:
Asset A/c Dr
to- Revaluation Reserve A/c
In case of decrease in hte BV of the asset, then pass the reverse entry of the above.
Depreciation under the Co's Act is required to be calculated on the revised book value of the asset for the remaining useful of the asset.
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