Illustated example of how to post Double entries to record revaluation of non current asset.

The carrying value of Zen’s property at the end of the year amounted to Tshs 108,000. On this date the property was revalued and was deemed to have a fair value of Tshs 95,000. The balance on the revaluation reserve relating to the original gain of the property was Tshs 10,000.

What is the double entry to record the
revaluation?
Solution 
Loss on revaluation:
Carrying value of non-current asset
at revaluation date
108,000
Valuation
95,000
Loss on revaluation
13,000
Double entry:
Dr
Revaluation reserve                                             10,000
     (to maximum of original gain)                             
Dr Income statement                                                  3,000
Cr Non-current asset                                                 13,000

The revaluation gain or loss must be disclosed in both the statement of changes in equity and in other comprehensive income

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