Tag: Revaluation

The table shows how a property appears in the statement of financial position of Alex ltd:

• land and buildings – £100k
• accumulated depreciation – £40k
• net book value – £60k

The land and buildings are revalued to £150k

What is the journal entry to record the revaluation?

Select ONE answer:

1. Dr land and buildings £50k AND CR Income Statement £50k
2. Dr land and buildings £50k accumulated depreciation £40k AND CR revaluation reserve £90k
3. Dr land and buildings £50k AND CR revaluation reserve £50k
4. Dr land and buildings £90k AND CR revaluation reserve £90k

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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