Lidia Ltd had a property on its statement of financial position at 30 June at a net book value of £720,000. The property was revalued at that date at £860,000. What will be the effect on the company's revaluation reserve?
A) The revaluation reserve will increase by £140,000.
B) The revaluation reserve will increase by £860,000.
C) The revaluation reserve will increase by £720,000.
D) The revaluation reserve will not change.

Question

Quizplus · Accepted Answer

The revaluation reserve will increase by the difference between the revalued amount and the net book value, which is £860,000 - £720,000 = £140,000.

Lidia Ltd Had a Property on Its Statement of Financial