MGT401 GDB # 2 Solution

Entries ill be

debit : asset value by 30000
credit : reveluation surplus by :30000
every year we can charge depreciation 150000/20=7500
if we compare it with depreciation on previous value of 12000 then
120000/20=6000
the difference can be reduced from surplus account and realized as retained earning.
debit: revaluation surplus : 1500
credit retained earning : 1500.