Accounting 9706 · AS & A Level · Accounting for non-current assets

Accounting for non-current assets — practice question

The table below summarises the way a property was shown in the statement of financial position. Land and buildings: $100000$ Accumulated depreciation: $(40000)$ Net book value: $60000$ At a later date, the land and buildings were revalued to $150000$. What journal entry should be made to record the revaluation?

  • ADr income statement $50000$; Cr land and buildings $50000$
  • BDr land and buildings $50000$; Cr income statement $50000$
  • CDr land and buildings $50000$ and provision for depreciation $40000$; Cr revaluation reserve $90000$
  • DDr revaluation reserve $90000$; Cr land and buildings $50000$ and provision for depreciation $40000$

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