Accounting for IGCSE & O level - Accounting Procedures (Section 1 - No. 42)
When a company uses the revaluation method, and the value of the asset decreases, what should the company do?
Debit the income statement, credit accumulated depreciation
Debit the revaluation surplus account.
Debit accumulated depreciation, credit the income statement.
Credit the income statement and debit accumulated depreciation.
Explanation
If the value decreases, it's an expense and it will reduce profit
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