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
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN BASE ON NOTIFICATION
- Taxable or Tax exempt
- ADVANCE PAYMENT OF ADVOCATE
- TDS Deducted AY-2013-14 Not Reflected in 26as
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- Eway bill not cancelled within 24 hous what can be due
- UNWANTED CREDIT BALANCE OF GST AS PER BOOKS
- Eway bill generation from place other than registeted
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
