Revaluation Asset Reinstatement Journal Entry Problem
Hello,
We have an asset which did addition in dec-2008 with cost and accumulated depreciation, but no depreciation in system. We did three times revaluation for this asset , and then did unit adjustment from 1 to 690, then partial retirement on it for 340, now we reinstate it and found there is a journal entry Dr: revaluation reserve Cr: depreciation expense, the amount for this journal is the total amount for the 3 times revaluation reserve amount.
Our question is why there is a journal generated for the reinstatement? BTW, there is not any journal in terms of revaluation reserve for partial retirement.
Thanks
We have an asset which did addition in dec-2008 with cost and accumulated depreciation, but no depreciation in system. We did three times revaluation for this asset , and then did unit adjustment from 1 to 690, then partial retirement on it for 340, now we reinstate it and found there is a journal entry Dr: revaluation reserve Cr: depreciation expense, the amount for this journal is the total amount for the 3 times revaluation reserve amount.
Our question is why there is a journal generated for the reinstatement? BTW, there is not any journal in terms of revaluation reserve for partial retirement.
Thanks
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