Treatement of sale of revalued land

how do you treat it

Land bought on 1-4-1990

cost: 40lacs

sold a part of land which has purchase price of 2lacs for 60lacs

 

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Quick Summary
This discussion explores the correct accounting treatment when selling a portion of land that was previously revalued. It delves into the application of indexation to determine the current value and calculate any capital gains or losses. The conversation also touches upon how to manage the revaluation account, offsetting any surplus or deficit against similar asset revaluations.

I think you have to do indexation of the land, find current value and show gain or loss on the sale. I dont understand how lower of carrying amount and fvlcs is applicable here. Maybe it is still measured that way and record gain or loss over it. 

Plus, you have to close the revaluation account and offset the surplus or deficit with similar clasz of assets revalutuon gain and loss. So inde  the land, nrv is 60 and report gain or loss. Then finally deal with revaluation account 

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