On $1$ January $2016,$ Sonny Ltd bought buildings for P$540,000.$ At that date it was decided that the buildings had a useful life of $50$ years. On January $2018.$ It was decided to revalue the buildings to its open market value of P$600,000.$ On $31$ December $2019,$ the property was sold for P$620,000.$ No depreciation is charged in the year of disposal.

$$ a$)$ Prepare a journal for the revaluation of the property on $1$ January $2018.$

$$ From $($a$)$ above, calculate profit or loss on the disposal of the property.

Answer rating: 100% (QA)

Journal Entry for Revaluation a Date January 1 2018 Description Revaluation of Buildings Acc... View the full answer