Revaluation Reserve

lakshmi narayana (student) (19 Points)

20 August 2007  

An asset has been revalued and difference (increased) is transferred to revaluation reserve during the year 2005-06.

In the year 2006-07, the asset has been sold for profit.

Can any one answer the treatment for the amount credited to revaluation reserve in 2005-06 i.e., whether the same can be used for issue of bonus share. If the same can not be used for the said purpose, what will be the alternative use?