Illustration 3 On 1 January 2015 Adam Bhd purchased a building for RM5,000,000. The building’s estimated life was 25 years. On 1 January 2017, value of the building was determined to be RM4,800,000. On 31 December 2018, Adam Bhd faced severe cash flow problems and sold the building to Saleh Bhd for RM4,400,000. On 1 Adam Bhd adopts the revaluation model to measure its property plant and equipments. Required: Prepare a schedule to show the movement of the building for the years ended 31 December 2017 and 2018. Solution –illustration 3 A
Schedule of movement of building for years ended 31 December .... 2017
2018
Cost/Valuation Bal b/d as at 1 January Accumulated depreciation eliminated Revaluation surplus Disposal As at 31 December
5000,000 (400,000) 200,000 4800,000
4800,000 4800,000
Accumulated depreciation As at 1 January Accumulated depreciation eliminated Charge for the year (4800000/23) Disposal Bal c/d as 31 December
400,000 (400,000) 208,700 208,700
208,700 208,700 (417,400) -
Carrying amount as at 31 December
4591,300
-