A machine is purchased on 1 January 2022 at a cost of N$200 000. Depreciation is provided on a straight-line basis at 20% per annum with a nil residual value.
On 31 December 2023, the asset is revalued to a fair value of N$180 000. Ignore tax.
The journal/s to record the revaluation using the net replacement value model is:

Question

A machine is purchased on 1 January 2022 at a cost of N$200 000. Depreciation is provided on a straight-line basis at 20% per annum with a nil residual value. 
 On 31 December 2023, the asset is revalued to a fair value of N$180 000. Ignore tax. 
 The journal/s to record the revaluation using the net replacement value model is:

Answer

Dr Machine accumulated depreciation 80 000 & Cr Machine cost 80 000  and  
 Dr Machine cost 60 000 & Cr Revaluation surplus 60 000

Answer

Dr Machine cost 80 000 & Cr Revaluation surplus 80,000

Answer

Dr Machine accumulated depreciation 80 000 & Cr Machine cost 80 000 and  
 Dr Machine cost 180 000 & Cr Revaluation surplus 180 000

Answer

Dr Machine accumulated depreciation 40 000 & Cr Machine cost 40 000  
 and Dr Machine cost 20 000 & Cr Revaluation surplus 20 000

Answer

Dr Machine accumulated depreciation 120 000 & Cr Machine cost 120 000 and  
 Dr Machine cost 180 000 & Cr Revaluation surplus 180 000

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A machine is purchased on 1 January 2022 at a cost of N$200 000. Depreciation is...

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