Study the scenario below and answer the question that follows: Requ...
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Study the scenario below and answer the question that follows:
Timberu Ltd
On 31 December 2024, Timberu Ltd revalued its plant to net replacement cost.
The company has elected to realise the revaluation surplus while the asset is being used and to offset the accumulated depreciation against the gross carrying amount of the asset on revaluation. No other assets have been revalued.
The company depreciates its plant on the straight-line basis over its estimated useful life. Depreciation for the current year must be calculated on the most recent revalued amount.
Details of plant:
The residual value and useful life of the plant did not change.
Assume a tax rate of 28%.
Source: Rathnasamy, S. 2024.
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Required
Prepare the general journal entries relating to the above information for the year ended 31 December 2024. Journal narrations are not required.
(23 Marks)
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