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Lok Ltd purchased land in 2001 at a cost of $300,000. Land prices have increased significantly, and an independent appraisal at 1 July 2021 valued
Lok Ltd purchased land in 2001 at a cost of $300,000. Land prices have increased significantly, and an independent appraisal at 1 July 2021 valued the land at $1,400,000.
The Balance Sheet of Lok Ltd, before revaluation, appears as follows.
Balance Sheet BEFORE REVALUATION:
| Lok Ltd Balance sheet at 30 June 2021 | |
| Assets |
|
| Land | 300,000 |
|
|
|
| Equity |
|
| Capital | 300,000 |
|
|
|
Required:
- Prepare the summary revaluation increase journal at 1 July 2021 to record the revaluation. (1 mark)
- Prepare the Balance Sheet for Lok Ltd at 1 July 2021, after revaluation. (1 mark)
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