Axe Ltd. purchased a building worth Tshs. 200,000 on January 1,2008. The building has a useful life of 20 years and the companyuses straight line method. On December 31, 2010 the company intendsto switch to revaluation model and carries out a revaluationexercise which estimates the fair value of the building to beTshs.190,000 as at December 31, 2010. On December 31, 2012 Axe Ltd.revalues the building again to find out that the fair value shouldbe Tshs.140,000. The expected useful life has remainedunchanged
Required: Calculate
a)Revaluation surplus amounts and show the Journal to record therevaluations
b)Depreciation charge for each period
c)Excess depreciation to be transferredand show the Journal torecord the transfer
