I have created an asset. Now i have appreciated the value of the asset… Let u give u an example…
Suppose I buy an asset for 10000$… now the price of the asset has gone up doe reasons xyz… i enter the following entry into the Fixed asset Acquisition Journal…
Now if I write up the value of the asset by 5000$… Asset value goes up
My question is what the account/ledger that is XXXX… what other account is affected in this case?
The write-up adjustment’s posting is determined by the accounts that you have set in the corresponding asset’s posting profile.
(Fixed Assets → Setup → Fixed assets posting profile.
Typically, the Dr would be the Fixed Assets Cost account and the Cr is an asset clearing account.
Thanks for the reply Sunil
When the price of an asset goes up due to market for eg like the real estate book for the land… No accounts are affected… the accounts only come into picture when we sell the asset…
I asked my Prof about it… and he clarified it …