XYZ Ltd sold a revalued asset for cash & made a profit on the sales. What then is the Correct double entry to record the transact?

So to answer in step by step basis;

Initially the asset is recognised:

Dr.  Asset @ Cost

       Cr. Loan account or bank account.

Annually depreciation is recognised.

Dr. Depreciation P&L 

      Cr.   Accumulated depreciation - SFP

Then asset is revalued:

Dr.  Asset new value at the beginning of financial year (revaluation)100%Dr.  Accumulated depreciation (the value at beginning of the year) 

       Cr.  Asset @ Cost (Initial)

       Cr.  Revaluation reserve (OCI)

There would be deferred tax effect as well, but leaving this out of the entries.

Each year the asset will continue to be depreciated over the remaining useful life.

The revaluation reserve will also unwind reducing over the useful life of the asset.

Now the sale:

Dr.  Accumulated depreciation

Dr.  Revaluation reserve (OCI)

Dr.  Deferred Tax balance (SFP)

Dr.  Bank with the proceeds on sale

       Cr. Asset @ revaluation 

       Cr. Income Tax (Income Statement)

       Cr.  balancing figure is the profit on sale.

Thank you, it was a great question.

DR  - CASH 

DR-  ACCUMULATED DEPRECIATION8  

   CR - ASSETS  

CR - OTHER GAIN ( gain from assets sales  ) 3

Dr : Cash

Cr:NBV of Asset

Cr Profit on assets (credit to p & L).

Previous revalued gain transferred from Other comprehensive income.