Troubadour Limited had an existing revaluation surplus in respect to an item of Plant that had been derecognised.An 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 debiting retained earnings and crediting the asset revaluation surplus account.

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