Acc.Deprecition

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SHIRAS (Querist)

29 January 2011 in Acc.Depreciation we made entry for all the assets in asingle Journal entry or seperate entry for each assets

Eg: depreciation DR 2500
To Acc. Depre Furniture 1000
To Acc. Depre Machenery 1500

OR Depreciation DR 2500
To Acc. Depre 2500

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

29 January 2011 Always keep the depreciation reserve in Asset categorywise, it is good for further tracking and writting off the reserve accounts

so pass this entry

depreciation DR 2500
To Acc. Depre Furniture 1000
To Acc. Depre Machenery 1500

Vivek Raju P

Vivek Raju P (Expert)

30 January 2011 Agreed with Mr Krishnan, in fact all ERP systems maintain separate GL accounts for each category of assets and make automatic postings asset wise on making the depreciation run, in case of non ERP software it is always beneficial to post separate entries and if possible by asset as it will help at the time of disposal of assets for gain or loss calculation.

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