nimie
Dec 19, 2009, 07:49 PM
to record journal entry for the long term investment carried at revaluation value.
ROLCAM
Dec 19, 2009, 09:35 PM
Example:- A piece of land in an industrial estate purchased in January
2000 for $1,000,000 dollars.
The journal entry in January 2000,
and the journal entry in December 2009.
The land has been valued at $1,800,000 in December 2009.
1)
DEBIT Land Account $1,000,000
CREDIT Bank Account $1,000,000
A piece of Industrial Land purchased
for eventually building a factory.
2)
DEBIT Land Account $800,000
CREDIT Revaluation Reserve A/c $800,000
Being the revaluation of land in December 2009.as per revaluation certificate obtained from valuer.