Depreciation

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Gowtham

Gowtham (Querist)

25 May 2014 Any one Explain the difference between the Depreciation & Accumulated Depreciation with suitable examples.

Nikhil Kaushik

Nikhil Kaushik (Expert)

25 May 2014 let say you bought an asset worth Rs 1000 on 1 April 2014.

on 31 March 2015, you provide 10% depreciation. So on 1 April 2015, the net bock is rs 90

on 31 March 2016, you provide 10% depreciation again. So depreciation will be Rs 9 and net block will be Rs 81.

The depreciation provided during the year is called depreciation..

However, while presenting the books of accounts, assets are first shown at gross value and then deprecation charged till date is shown as accumulated depreciation and reduced from gross block to arrive at net block.

So in above example, depreciation for Year 1 and 22 will be Rs 10 and Rs 9 respectively and accumulated depreciation will be Rs 19.

Rupesh Jain

Rupesh Jain (Expert)

26 May 2014 deprecation is charged to P/L a/c it is for the year.

and ACcumulated depreciation is depreciation from starting to till date related to particular assets.

for example

one assets purchase in 2009 for rS. 5000000/-

you charges Res. 350000/- deprecation per year

now in 2014
6 year depreciation from 2009 to 2014 = 2100000/- is accumulated depreciation and Rse. 350000/- is depreciation.

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