I am doubtful about the double entries created for Asset Revaluation. For asset decrease, the typical journal entries are:
Dr Asset A/C
CR Revaluation Reserve A/C
I got the following journal entries generated from an asset revaluate from USD 1000 to USD 1200 and this asset has a is a history of ordinary depreciation last year: USD 150. There is no special or unplanned depreciation.
DR Accumulate Depreciation A/C 150
CR Depreciation A/C 150
DR Fixed Asset A/C 50
CR Revaluation Reserve A/C USD 50
The jounals generated are quite different from the typical ones. Is this the expected behaviour that the system will take into consider any depreciation arising from ordinary, special or unplanned depreciation before adding the remaining surplus of USD 50 from the Revaluation Reserve A/C?
Can anybody tell me if my understanding is correct? Thank you in advance!