Accumulated depreciation

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Rizwan Arif

Rizwan Arif (Querist)

01 July 2014 what is accumulated depreciation ?? when we apply it ??

CA Parul Saxena

CA Parul Saxena (Expert)

01 July 2014 Accumulated depreciation is nothing but the depreciation for the various years cumulatively is known as 'Accumulated Depreciation.
For example.
Cost of the asset=Rs.100000
Dep.for the 1st year=Rs.1000
Dep.for the 2nd year =Rs.1000
Then accumulated depreciation in 2nd year is=1000+1000=2000
WDV of the asset in 2nd year=10000-2000=8000

Vishnu Saboo

Vishnu Saboo (Expert)

01 July 2014 accumulated depreciation is a account of reserve, when depreciation is charged periodically following entry is being made

Depreciation acc dr (PnL)
To accumulated depreciation (B/S)
since accumulate dep account is of B/S, at the end of each period it will show till date balance.

Rupesh Jain

Rupesh Jain (Expert)

01 July 2014 it is depreciation on particluarm assets form the year when you start depreciate to till date.

for example

purchase in 2001 and make depreciation then bal. of depreciation upto 31.3.2014 is accumulated depreciation for that assets.

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