Revaluation Surplus Formula

Revaluation Surplus Formula

Revaluation Surplus can be calculated by the following simple formula.

Revaluation Surplus = Revalued Amount – Net book Value

Example

Plant Cost = 100,000

Net book value = 80,000

Revalued amount= 120,000

What would be revaluation Surplus?

Solution

Revaluation Surplus = Revalued amount- net book value

=120,000-80,000

= 40,000 (revalued amount)