Question:

Tan plc revalued an equipment which originally costs 800,000 on 1 January 20X1, to 1,000,000 on 1 January 20X6. The equipment was depreciated using straight line depreciation at a rate of 10% per annum. The useful economic life of the equipment remains unchanged.

Required:

Write the journal entries for the revaluation of the equipment on 1 January 20X6 and also calculate and journalise the depreciation for the equipment for the year to 31 December 20X6.