Stairway Ltd Is Undertaking Its Regular Review of the Fair

question 17

Multiple Choice

Stairway Ltd is undertaking its regular review of the fair value of its assets.It has discovered the following material changes

What are the journal entries required to record the revaluations in accordance with relevant accounting standards?

• A) \[\begin{array} { | c | l | c | c | } \hline \mathrm { Dr } & \text { Loss on revaluation of land } & 30000 & \\ \hline \mathrm { Cr } & \text { Land-Howrah } & & 30000 \\ \hline\\ \hline \mathrm { Dr } & \text { Land-Lenah Valley } & 50000 & \\ \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 50000 \\ \hline & & & \\ \hline \mathrm { Dr } & \text { Equipment } & 60000 & \\ \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 60000 \\ \hline \end{array}\]
• B) \[\begin{array} { | c | l | c | c | } \hline \mathrm { Dr } & \text { Loss on revaluation of land } & 30000 & \\ \hline \mathrm { Cr } & \text { Land-Howrah } & & 30000 \\ \hline & & & \\ \hline \mathrm { Dr } & \text { Land-Lenah Valley } & 50000 & \\ \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 50000 \\ \hline \mathrm { } & & & \\ \hline \mathrm { Dr } & \text { Accumulated depreciation-equipment } & 260000 & \\ \hline \mathrm { Cr } & \text { Equipment } & &260000 \\ \hline & & & \\ \hline \mathrm { Dr } & \text { Equipment } & 60000 & \\ \hline \mathrm { Cr } & \text { Asset revaluation reserve } & &60000 \\ \hline \end{array}\]
• C) \[\begin{array} { | l | l | l | l | } \hline \mathrm { Dr } & \text { Land-Lenah Valley } & 50000 & \\ \hline \mathrm { Cr } & \text { Land-Howrah } & & 30000 \\ \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 20000 \\ \hline & & & \\ \hline \mathrm { Dr } & \text { Accumulated depreciation–equipment } & 260000 & \\ \hline \mathrm { Cr } & \text { Equipment } & & 260000 \\ \hline & & & \\ \hline \mathrm { Dr } & \text { Equipment } & 60000 & \\ \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 60000 \\ \hline \end{array}\]
• D) \[\begin{array} { | c | l | r | r | } \hline \mathrm { Dr } & \text { Land } & 20000 & \\ \hline \mathrm { Cr } & \text { Gain on revaluation } & & 20000 \\ \hline & & & \\ \hline \mathrm { Dr } & \text { Equipment } & 60000 & \\ \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 60000 \\ \hline \end{array}\]

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Definitions:

Optimum PH

The specific pH value at which an enzyme or any other soluble substance exhibits maximum activity.

Digestive Enzymes

Proteins that catalyze the breakdown of food into nutrients that can be absorbed by the body.

Maltase

An enzyme that breaks down maltose into glucose, aiding in carbohydrate digestion.

Digestive Organ

An organ that is part of the digestive system and helps in the breakdown and absorption of food, such as the stomach, liver, or intestines.