TRUONG QUANG BAO NGOC
31161021009
B.BUS 7.3
SESSION 3: HOMEWORK
1.
Jan 1, x7
Jan 1, x8
Jan 1, x9
ASSETS
Equipment
$60000
Mar 31, x9
Mar 31, x9
Before
revaluation
After
revaluation
Dec 31, x9
$60000
$60000
$60000
$640000
$640000
(Acc.Depreciation) 0
$4000
$8000
$9000
0
$3765
NBV
$56000
$52000
$51000
$64000
$60235
$60000
OWNER’S EQUITY
Revaluation
surplus
INCOME
STATEMENT
Depreciation
expense
$13000
For 20x8
$4000
For 20x9
$4000
For 3 months
For 9 months
(1/1/x9 – 31/3/x9)
(13/3/x931/12/x9)
$1000
$3765
Comprehensive
income
Gain on
revaluation of
property
a) Journal entries
$13000
b) GENERAL JOURNAL
Date
Accounts and
Explanations
Debit
Jan 1, 20x7
Machine account
$60000
Account Payable/ Cash
Jan 1, 20x8
Depreciation expense
$60000
$4000
Acc. Depreciation
Jan 1, 20x9
Depreciation expense
$4000
$4000
Acc. Depreciation
Mar 31, 20x9
Depreciation expense
$4000
$1000
Acc. Depreciation
Mar 31, 20x9
$1000
Acc. Depreciation
$9000
Property account
$4000
Revaluation surplus
Dec 31, 20x9
Depreciation expense
Credit
$13000
$3765
Acc. Depreciation
$3765
2. Circular 200 on asset revaluation
Article 68. Account 412 - Difference due to asset revaluation
Written in Circular No. 200/2014/TT-BTC, transactions regarding revaluation and settlement of differences
for existing assets such as PPE, property investment, or finished/unfinised gods will be recorded in
account 412 – difference due to asset revaluation. The difference is recorded in several transactions as
follow:
- Revaluation of materials, goods:
If the goods are revaluated with higher price than net book value, the positive price difference will be
recorded:
Dr 152, 153, 155, 156
Cr 412 - Difference due to asset revaluation.
If the goods are revaluated with lower price than net book value, the negative price difference will be
recorded:
Dr 412 - Difference due to asset revaluation.
Cr 152, 153, 155, 156.
- Revaluation of fixed assets and real estate investment:
Historical cost, book value, depreciation value is adjusted as an increase, record:
Dr 211, 213, 217 (adjusted increase in cost)
Cr 214 - Depreciation of fixed asset (adjusted increase in depreciation value)
Cr 412 - Difference due to asset revaluation. (adjusted increase in book value)
Historical costs, book value, depreciation value is adjusted as a decrease, record:
Cr 412 - Difference due to asset revaluation. (adjusted decrease in book value)
Dr 214 - Depreciation of fixed asset (adjusted decrease in depreciation value)
Cr 211, 213, 217 (adjusted decrease in cost)
b) At fiscal year-end, If account 412 has credit balance, and business has decided to transfer to
owner’s
capital:
Dr 412 - Difference due to asset revaluation.
Cr 411 - owner’s capital.
- If Account 412 has debit balance, and business has the decision on decreasing owner’s capital,
record:
Dr 411 - owner’s capital
Cr 412 - Difference due to asset revaluation.
Reference: Vanbanphapluat.co. (2019). Circular No. 200/2014/TT-BTC on guidelines for accounting
policies for enterprises. [online] Available at: https://vanbanphapluat.co/circular-no-200-2014-tt-btc-onguidelines-for-accounting-policies-for-enterprises [Accessed 23 Jan. 2019].