Revaluation surplus

[maira]

My question is, how to treat loss on disposal asset that revalued?
as long as i know, you will put nil in SOPL ?
but what if the amount you sold, below the carrying value before the revaluation surplus, thus i need to treat it in sopl, right?
For example, At 1/1/07, Land costs 50,000 was revalued to 70,000 and at 1/1/09, you sold the land for 40,000. (assume theres no depreciation).
so the shortfall of 30,000 will be set against the revaluation surplus ie 20000. and what bout the other 10,000? is it loss on disposal ie 10,000 at SOPL?

 

[Haroon Khan]

Loss on disposal of assets revalued is charge in SOFP (Balance Sheet) to the extent of revaluation surplus recognize previously, remaining value is expensed out in SOCI (Income Statement / Profit and Loss Account).
In question 30,000 is loss on land sold. However 20,000 should be set against revaluation surplus recognized previously and remaining 10,000 should be charged to SOCI (P&L A/C).
See attachment for double entries.

 

[maira]

thankkk youu