accumulated depriciation
This query is : Resolved
27 March 2009
Hi all
I want to know what is accumulated depriciation and how it is treated in accounts. please help me with example
I want to know what is accumulated depriciation and how it is treated in accounts. please help me with example
Tushar Yerawar
(Expert)
27 March 2009
Accumulated depreciation means a total depreciation charged on a particular asset.
If Asset is purchased on 01.04.2006 for Rs.100000 and depreciated @10%p.a. on SLM
then accumulated depreciation as on 31.03.2008 will be Rs.20000 (i.e. 10000 per annum for 2 years)..
This depreciation needs to be deducted from Gross block of fixed asset in financial statement.
If Asset is purchased on 01.04.2006 for Rs.100000 and depreciated @10%p.a. on SLM
then accumulated depreciation as on 31.03.2008 will be Rs.20000 (i.e. 10000 per annum for 2 years)..
This depreciation needs to be deducted from Gross block of fixed asset in financial statement.
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Manmohan ACA, CS
(Expert)
28 March 2009
simple and Good explanation with good example
Laxmi Narayana Sahu
(Expert)
28 March 2009
Accumulated Depreciation:Accumulated Depreciation is the Collection of depreciation amount from the Profits of the Enterprise & setting aside of the profits for the use of assets in the enterprise for the replacement of the used asset in the business.
28 March 2009
tushars explanation is very correct
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