Accumaleted depereciation
This query is : Resolved
SIJU KURIYAN
(Querist)
09 March 2012
dear sir
i wanted to know about accumaleted depereciation ,entry,applicability
i wanted to know about accumaleted depereciation ,entry,applicability
09 March 2012
Depreciation A/c Dr
To Accumulated Depreciation
P&L A/c Dr
To Depreciation
Accumulated depreciation is shown as a deduction from Fixed Assets.
Every year same entries are passed and the balance in the accumulated depreciation keeps on increasing.
In the year in which the asset is sold, entry will be:
Sale of Asset A/c Dr.
To Fixed Assets
Accumulated Depreciation A/c Dr
To Sale of Asset A/c
Bank A/c Dr.
To Sale of Asset A/c
Sale of Asset Dr
To P&L
(In case of profit)
P&L Dr.
To Sale of Asset
(In case of loss)
To Accumulated Depreciation
P&L A/c Dr
To Depreciation
Accumulated depreciation is shown as a deduction from Fixed Assets.
Every year same entries are passed and the balance in the accumulated depreciation keeps on increasing.
In the year in which the asset is sold, entry will be:
Sale of Asset A/c Dr.
To Fixed Assets
Accumulated Depreciation A/c Dr
To Sale of Asset A/c
Bank A/c Dr.
To Sale of Asset A/c
Sale of Asset Dr
To P&L
(In case of profit)
P&L Dr.
To Sale of Asset
(In case of loss)
SIJU KURIYAN
(Querist)
10 March 2012
dear sir
i have a doubt regarding accumalated depreciation
1. any changes in the value of asset,while providing these depreciation.?
2.any changes in the value of balnce sheet/trail balnce (increse/decrese)
3. undedr of accumaleted depreciation ?
4. under of depreciation ? (while providing accumalated depreciation)
kindly reply at the earliest
i have a doubt regarding accumalated depreciation
1. any changes in the value of asset,while providing these depreciation.?
2.any changes in the value of balnce sheet/trail balnce (increse/decrese)
3. undedr of accumaleted depreciation ?
4. under of depreciation ? (while providing accumalated depreciation)
kindly reply at the earliest
10 March 2012
1. By following the accumulated deprciation method, the asset is shown at its historical cost, i.e., the cost at which it was purchased.
The presentation in the Balance Sheet is as under:
Fixed Assets
Less: Accumulated Depreciation
There is no change in the value of asset.
2. Impact on Balance Sheet/Trial Balance
Increase in value of accumulated depreciation and booking depreciation as an expense.
Unable to understand queries 3 & 4.
The presentation in the Balance Sheet is as under:
Fixed Assets
Less: Accumulated Depreciation
There is no change in the value of asset.
2. Impact on Balance Sheet/Trial Balance
Increase in value of accumulated depreciation and booking depreciation as an expense.
Unable to understand queries 3 & 4.
SIJU KURIYAN
(Querist)
10 March 2012
sir
eg capital 5000 asset 5000
eg capital 5000 asset 5000
11 March 2012
What do you want to ask in queries 3 & 4? The language is not clear. Kindly re frame the queries.
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