Tully Limited had an existing revaluation surplus in respect to an item of plant that has now been derecognised. The appropriate journal entry to transfer the surplus to retained earnings would include:

Question

Quizplus · Accepted Answer

The revaluation surplus is transferred to retained earnings by crediting retained earnings and debiting the asset revaluation surplus account.

Tully Limited Had an Existing Revaluation Surplus in Respect to an Item