Gusna Co purchased a building on 31 December 20X1 for $750,000. At the date of acquisition, the useful life of the building
was estimated to be 25 years and depreciation is calculated using the straight-line method. At 31 December 20X6, an
independent valuer valued the building at $1,000,000 and the revaluation was recognised in the financial statements.
Gusna’s accounting policies state that excess depreciation arising on revaluation of non-current assets can be transferred
from the revaluation surplus to retained earnings
What is the journal entry to record the transfer of excess depreciation from
the revaluation surplus to retained earnings?