Hendersons Ltd has just begun to revalue its plant and equipment.The following information about the items included in this class of non-current assets shows their carrying value,and most recent revaluation. What is/are the appropriate journal entry(ies)to record the revaluations?
E) None of the given answers.

Question

Hendersons Ltd has just begun to revalue its plant and equipment.The following information about the items included in this class of non-current assets shows their carrying value,and most recent revaluation.  What is/are the appropriate journal entry(ies)to record the revaluations?
E) None of the given answers.

Quizplus · Accepted Answer

The appropriate journal entry to record the revaluation of plant and equipment is to increase the carrying value by the amount of the revaluation and credit the revaluation reserve. Choice A shows the correct debit and credit entries for each item of plant and equipment. Choice B is incorrect as it mistakenly credits the plant and equipment account instead of the revaluation reserve. Choice C and D are incorrect as they do not show the correct debit and credit entries for the revaluation. Therefore, the best choice is A.

Hendersons Ltd Has Just Begun to Revalue Its Plant and Equipment.The