Assets like plant, machinery, furniture, computer etc…, usually depreciate in value; however there are some which appreciate in value also like land and it is called revaluation. Given below is the revaluation of assets journal entry –
If the value of asset of decreases from $20000 to $18000 than it is similar to deprecation and following journal entry will be passed in the books –
Revaluation account Dr $2000
To Sundry Assets account $2000
If there is an increase in the market value of land from $20000 to $23000 than it is profit for the company because of the appreciation and hence it has to brought in the books by passing the given below entry –
Land account Dr $3000
To Revaluation A/C $3000