Depreciation
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
29 August 2011
why is depreciation recorded in p and l account if it is used in production
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.
Assets is also use in producation so its depreciation is also recorded as expenses.
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.
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.
30 August 2011
The experts are right and they have given you the proper answer. I agree with them
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