Treatment of Revaluation reserve(UrgenTT)

3067 views 2 replies

Q1) Please mention the book entries?

Q2) Treatement and disclosure as per Companies Act,1956? Will the revaluation reserve be a part of Reserves & Surplus?

3) How many years,  to be written off?

Replies (2)

 

Any upward revaluation of a fixed asset is credited to an account known as the Revaluation Reserve. To pass the entry, you'll have to debit the Fixed Asset a/c and credit the Revaluation Reserve a/c.

As per companies act schedule VI, Revaluation reserve is to be shown on the Liabilities side of the balance sheet under the head "Reserves and surplus"

There's no specified period of writing it off.

"Any upward revaluation of a fixed asset is credited to an account known as the Revaluation Reserve. To pass the entry, you'll have to debit the Fixed Asset a/c and credit the Revaluation Reserve a/c.
As per companies act schedule VI, Revaluation reserve is to be shown on the Liabilities side of the balance sheet under the head "Reserves and surplus"
There's no specified period of writing it off."

THIS STATEMENT IS RIGHT BUT,

As per AS the depreciation on subsequent years  on the revalued portion of the fixed assets has to be credited to  P/L A/c.

SUM,

Book value on 31/3/9 Rs. 100000, Revaluation on 1/4/9 100000. new value of assets 200000. if depreciation rate 10%, then in 31/3/2010 it will be,

P/l a/c Dr 20000 to Depreciation A/c Dr 20000
 & Revaluation reserve A/c Dr 10000 to P/l  A/c  20000

Alternatively

P/l A/c Dr 20000, To Depreciation A/c 10000, To Revaluation Reserve A/c 10000.

 

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details