accumulated depriciation

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monia (Querist)
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02 September 2009 Hi all

what is accumulated depriciation with example and treatment in accounts and journal enteries. Please as soon as possible it is urgent

Monia

Kaustuv

Kaustuv (Expert)
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02 September 2009 Suppose on April 1, 2008 you have purchasd an asset for Rs. 1,00,000. The applicable dep. rate is 25% SLM. So during the year 2008-09, the depreciation charge would be Rs. 25,000. On 31st March 2009 the following entries would be passed:-

Depreciaition A/c.....Dr. 25,000
To Accumulated Dep. A/c

The depreciation expenses would be transferred to P/L Account.

on 31 March 2009, the Balance sheet would be shown as below:-

Fixed Assets

Gross Block 1,00,000

Less: Acc. Dep. (25,000)

Net Block 75,000

In case any doubt, feel free to contact me.

Nischint Kumar Somani

Nischint Kumar Somani (Expert)
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02 September 2009 accumulated deprecation means total deprecation charged on a particular date or at balance sheet date on a assets.

entries mentioned by Kaustuv are ok.

these entries will be passed every year and accumulated deprecation will be increased every year with the amount of deprecation charged.

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