Page 9 - 3. COMPILER QB - INDAS 16

31.3.2X08 By Balance c/d 13,75,000
16,50,000 16,50,000
1.4.2X08 To Balance b/d 13,75,000 1.4.2X08 By Revaluation Reserve (W.N.4) 1,25,000
31.3.2X09 By Profit and Loss A/c (W.N.5) 81,250
31.3.2X09 By Depreciation (W.N.3) 1,46,094
31.3.2X09 By Balance c/d 10,22,656
13,75,000 13,75,000
1.4.2X09 To Balance b/d 10,22,656 31.3.2X10 By Depreciation 1,46,094

31.3.2X10 To Profit and Loss 31.3.2X10 By Bank A/c 9,35,000
A/c (balancing figure) 58,438*
10,81,094 10,81,094

Working Notes:
1. Calculation of useful life of machinery on 1.4.2X01
Depreciation charge in 5 years = (30,00,000 – 17,50,000) = Rs. 12,50,000
Depreciation per year as per Straight Line method = 12,50,000 / 5 years = Rs. 2,50,000

Remaining useful life = Rs. 17,50,000 / Rs.2,50,000 = 7 years
Total useful life = 5 years + 7 years = 12 years
2. Depreciation after upward revaluation as on 31.3.2X06 Rs.
Book value as on 1.4.2X06 17,50,000

Add: 10% upward revaluation 1,75,000
Revalued amount 19,25,000
Remaining useful life 7 years (Refer W.N.1)
Depreciation on revalued amount = 19,25,000 / 7 years = Rs. 2,75,000 lakhs

3. Depreciation after downward revaluation as on 31.3.2X08 Rs.

Book value as on 1.4.2X08 13,75,000
Less: 15% Downward revaluation (2,06,250)
Revalued amount 11,68,750
Revised useful life 8 years
Depreciation on revalued amount = 11,68,750 / 8 years = Rs. 1,46,094

4. Amount transferred from revaluation reserve
Revaluation reserve on 1.4.2X06 (A) Rs. 1,75,000
Remaining useful life 7 years
Amount transferred every year (1,75,000 / 7) Rs. 25,000

Amount transferred in 2 years (25,000 x 2) (B) Rs. 50,000
Balance of revaluation reserve on 1.4.2X08 (A-B) Rs. 1,25,000

5. Amount of downward revaluation to be charged to Profit and Loss Account
Downward revaluation as on 1.4.2X08 (W.N.3) Rs. 2,06,250

Less: Adjusted from Revaluation reserve (W.N.4) (Rs. 1,25,000)
Amount transferred to Profit and Loss Account Rs. 81,250

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