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Depreciation

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Querist : Anonymous

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Querist : Anonymous (Querist)
29 August 2011 why is depreciation recorded in p and l account if it is used in production
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CA Ravi Sisodia

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CA Ravi Sisodia (Expert)
29 August 2011 All expenses and income related to production will charge to P&L a/c.
Assets is also use in producation so its depreciation is also recorded as expenses.
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VISHRUT

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VISHRUT (Expert)
29 August 2011 I will agree with experts and your view is even correct.
As Depreciation on plant & machinery used in the manufacture should be charged to Trading Account only and only Depreciation Expenses related to office and its related assets should be charged to Profit & Loss account ,

But in order to avoid such bifurcation Institute along with the MCA issue a clarification for charging all the depreciation together at a single streak at Profit & Loss account.
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C A S.S.Agarwal, M.Com.,LL.B,

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C A S.S.Agarwal, M.Com.,LL.B, (Expert)
30 August 2011 The experts are right and they have given you the proper answer. I agree with them
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