On $1$ April $20$X$8$ the fair value of Xu's property was $$100,000$ with a remaining life of $20$ years. Xu$$s policy is to revalue its property at each year end. At $31$ March $20$X$9$ the property was valued at $$86,000.$ The balance on the revaluation surplus at $1$ April $20$X$8$ was $$20,000$ which

relates entirely to the property. Xu does not make a transfer to realised profit in respect of excess

depreciation.

Required:

$($a$)$ Prepare extracts of Xu's financial statements for the year ended $31$ March $20$X$9$ reflecting the above information.

$($b$)$ State how the accounting would be different if the opening revaluation surplus did not exist.