HELP!!!!!!!!Revenue reserve???????

robbiep94

could someone please tell me how to get the revenue reserve in the revaluation of fixed assets question. I know you add up four figures but which one and if you can could you give me an example from a previous exam paper. Thanks for the help.

ChemHickey

g.

robbiep94 wrote: »

come on?

I'll PM You in the morning if you still want it? All my stuff is in the locked out in the extension.

robbiep94

ChemHickey wrote: »

g.

I'll PM You in the morning if you still want it? All my stuff is in the locked out in the extension.

sound out see you in the morning:D

Sunny!!

ok so im bored and want to refresh myself with this so i said id give help

ill work with the 2009 example

-buildings at the start are e290000. they are revalued to e360000 in 2004.
that is a dfifference of e70000. Then add back the depreciation ( 290000 x 0.02 x 4 years) which comes to e23200. Ok so we add e70000 and e23200. that gives us e93200 so thats the first element.



- ok so the building as said are revalued to e360000. and they are revalued again( increase of 10%) so its e396000. so the difference is e36000. Now add back the three years depreciation (7200x3) so thats e21600. So e36000 and e21600 is e57600


- add the bold figures and there it is e150800


any questions feel free to ask:)

robbiep94

Sunny!! wrote: »

ok so im bored and want to refresh myself with this so i said id give help

ill work with the 2009 example

-buildings at the start are e290000. they are revalued to e360000 in 2004.
that is a dfifference of e70000. Then add back the depreciation ( 290000 x 0.02 x 4 years) which comes to e23200. Ok so we add e70000 and e23200. that gives us e93200 so thats the first element.



- ok so the building as said are revalued to e360000. and they are revalued again( increase of 10%) so its e396000. so the difference is e36000. Now add back the three years depreciation (7200x3) so thats e21600. So e36000 and e21600 is e57600


- add the bold figures and there it is e150800


any questions feel free to ask:)

Thank you. Why is it 7200 x3?

Sunny!!

robbiep94 wrote: »

Thank you. Why is it 7200 x3?

you had the building for 2004, 2005, 2006 before they were revalued again. so thats 3 years!

robbiep94

Sunny!! wrote: »

robbiep94 wrote: »

Thank you. Why is it 7200 x3?

you had the building for 2004, 2005, 2006 before they were revalued again. so thats 3 years!

Ya but doesn't it incease each year?

ChemHickey

robbiep94 wrote: »

Sunny!! wrote: »

robbiep94 wrote: »

Thank you. Why is it 7200 x3?

you had the building for 2004, 2005, 2006 before they were revalued again. so thats 3 years!

Ya but doesn't it incease each year?

No since it's only the one, same building. Do you still need my stuff tomorrow?

robbiep94

ChemHickey wrote: »

robbiep94 wrote: »

Sunny!! wrote: »

robbiep94 wrote: »

Thank you. Why is it 7200 x3?

you had the building for 2004, 2005, 2006 before they were revalued again. so thats 3 years!

Ya but doesn't it incease each year?

No since it's only the one, same building. Do you still need my stuff tomorrow?

Ya do you mind?

ChemHickey

robbiep94 wrote: »

ChemHickey wrote: »

robbiep94 wrote: »

Sunny!! wrote: »

robbiep94 wrote: »

Thank you. Why is it 7200 x3?

you had the building for 2004, 2005, 2006 before they were revalued again. so thats 3 years!

Ya but doesn't it incease each year?

No since it's only the one, same building. Do you still need my stuff tomorrow?

Ya do you mind?

No problem. It's more of a fool proof formula instead of a breakdown. It's easier to follow i think.

Sunny!!

sorry i didnt explain it better, you might understand it better another way!:)

ChemHickey

Sunny!! wrote: »

sorry i didnt explain it better, you might understand it better another way!:)

This is the way I do it....

Workings to find revenue

Land : Increase in value of Land due to revaluation.

Buildings:

*Increase in value of building (1st year)
*Increase in value of building (4th year eg.10%)
*Opening depreciation balance (1st year)
*3xdepreciation accumulated on that building (eg, 3x P+L figure of 1st Year)


So, applying those for 2007

Land revenue, 50,000

Building revenue

*Increase in value yr1 = 90'000
*Increase in value yr4 = +78'000
*Opening Depr. balance= +68'800
*Depr.accumulated (eg, 3xP+L of yr1)= +(3x10'400)

= 268'000

I hope that helps a bit. I hope the figures are right too!

lauz94

ChemHickey wrote: »

Sunny!! wrote: »

sorry i didnt explain it better, you might understand it better another way!:)

This is the way I do it....

[COLOR="Red"]Workings to find revenue[/COLOR]

Land : Increase in value of Land due to revaluation.

Buildings:

*Increase in value of building (1st year)
*Increase in value of building (4th year eg.10%)
*Opening depreciation balance (1st year)
*3xdepreciation accumulated on that building (eg, 3x P+L figure of 1st Year)


So, applying those for 2007

Land revenue, 50,000

Building revenue

*Increase in value yr1 = 90'000
*Increase in value yr4 = +78'000
*Opening Depr. balance= +68'800
*Depr.accumulated (eg, 3xP+L of yr1)= +(3x10'400)

= 268'000

I hope that helps a bit. I hope the figures are right too!

Thank you so much! I was just looking for the same thing,spent the past half hour trying to figure out where the revenue reserve figure was coming from! :P