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Apr 17
The format of a revaluation account typically includes the following sections:
1. Opening balance: This is the value of the asset or liability being revalued at the beginning of the accounting period.
2. Revaluation: This section shows the change in value of the asset or liability as a result of the revaluation. It includes any adjustments made to the carrying amount of the asset or liability.
3. Closing balance: This is the updated value of the asset or liability after the revaluation has been completed.
4. Revaluation surplus/deficit: This section shows the difference between the closing balance and the opening balance. If the closing balance is higher than the opening balance, it is recorded as a revaluation surplus. If the closing balance is lower than the opening balance, it is recorded as a revaluation deficit.
5. Accumulated revaluation surplus/deficit: This section shows the cumulative effect of all revaluations on the asset or liability over time. It is the sum of all revaluation surpluses or deficits recorded in previous periods.
Overall, the revaluation account provides a clear record of the changes in value of an asset or liability due to revaluation, as well as the impact of these changes on the financial statements.
1. Opening balance: This is the value of the asset or liability being revalued at the beginning of the accounting period.
2. Revaluation: This section shows the change in value of the asset or liability as a result of the revaluation. It includes any adjustments made to the carrying amount of the asset or liability.
3. Closing balance: This is the updated value of the asset or liability after the revaluation has been completed.
4. Revaluation surplus/deficit: This section shows the difference between the closing balance and the opening balance. If the closing balance is higher than the opening balance, it is recorded as a revaluation surplus. If the closing balance is lower than the opening balance, it is recorded as a revaluation deficit.
5. Accumulated revaluation surplus/deficit: This section shows the cumulative effect of all revaluations on the asset or liability over time. It is the sum of all revaluation surpluses or deficits recorded in previous periods.
Overall, the revaluation account provides a clear record of the changes in value of an asset or liability due to revaluation, as well as the impact of these changes on the financial statements.
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