Depreciation entry

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Ashish (Querist)
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08 July 2014
Hi, I am working with Pvt Ltd Co. there we had purchased 1 camera on dated 27/09/2012 Rs. 6650/-. This camera we had booked in fixed asset. Now the camera has been misplaced by employee. so we recovered full amount of camera Rs. 6650/- from emoloyees salary(recovered date is 31/12/2013. my question is what would be the depreciation amount and journal entry for this? Please reply me your answer. i am awating....

Hiren J. Mandaliya

Hiren J. Mandaliya (Expert)
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08 July 2014 No. Depreciation in the year of recovering of amount from employees as it is deduction by whatever the reason.

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Ashish

Ashish (Querist)
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08 July 2014 But in the last year 12-13 we had charged the depreciation on it. while recovering the amount we had not deducted depreciation amount on that. now our accumulated depreciation lying in the liability side of balance sheet. so how do I square up that accumulated depreciation amount?

Hiren J. Mandaliya

Hiren J. Mandaliya (Expert)
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08 July 2014 It is one type of sale of camara. Therefore, the difference between amount received and WDV as on 31.03.2013 is profit and you have to book the profit in the books of account.

Ashish

Ashish (Querist)
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08 July 2014 Thanks I got your point. But before booking the profit, Can I charge depreciation in 13-14 till camera misplaced means till December? Thereafter I will book difference amount as profit.

Hiren J. Mandaliya

Hiren J. Mandaliya (Expert)
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08 July 2014 No. Depriciation can not be charged in the year of deduction or sale.

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