Accounting entries upon revaluation | AccountingWEB

Accounting entries upon revaluation

I would be grateful if someone could just clarify the necessary accounting entries when adjusting for a revaluation. It is probably best explained by using a illustration, therefore say :

Cost b/fwd £100,000
Dep'n b/fwd £4,000
2% straight line dep'n
Revaluation £250,000

I have so far adjusted as follows :

DR Cost b/fwd £150,000
DR Dep'n b/fwd £4,000
CR Revaluation reserve £154,000

DR P&L dep'n chg £5,000
CR B/S dep'n chg £5,000

Where I am a little unsure is with regards to the how and where I adjust for the difference in depreciation between the cost and revalued amount. Don't I simply transfer the difference from the revaluation reserve to the P&L ??

Please advise in double entry terms.

Thank you.

Paul Dorrington

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Abacjm |

What about depreciation ?

pdorrington |

Revaluation Reserve

Abacjm |