Depreciation

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SHIRAS (Querist)

28 January 2011 aAny one reply to my query. what is the depreciation journal entry. I think
Depreciation Dr 10000
To Furniture 10000

Depreciation Dr 15000
To Machinery 15000
OR
Accu. Depreciation Dr 15000
to Machinery 15000
In Tally accounting head of Acc.Dep is Indirect Expense? Is it Right?
Please Tell me?

Depreciation going to debit side of P/L a/c. and Decrease in Furniture and machinery in balance sheet. is it right?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

28 January 2011 In Tally, head of Depreciation will be Indirect Expenses and in such a case Entry 1 and Entry 2 both are correct.

Accumulated Depreciation as a whole is the total depreciation provided on the asset, past as well as for the current year. This account will have credit balance. If you maintain Accumulate Depreciation A/c , then in spite of crediting the Asset A/c, Accum. Dep. A/c will be credited by debiting Depreciation A/c. In such case there will be no effect in the Fixed Asset A/c.

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SHIRAS

SHIRAS (Querist)

30 January 2011 So Acc.Dep under Head of A/c will be Fixed assets in tally is it right?
Please tell me sir
Thank you

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