Axe Ltd. purchased a building worth Tshs. 200,000 on January 1, 2008. The building has a...

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

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