29 January 2011
This is based on the method of accounting which you are following, some companies keep reserve system and some can be credited to fixed asset directly, so both the effect are same
while creating Depreciation reserve it need to be grouped as Fixed assets, the we can see the Fixed asset net effect in Balance sheet
Following Depreciation reserve method is good & recommened also
29 January 2011
If the company is using Depreciation reserve. I think so the depreciation Reserve will be going to the liability side of the balance sheet.
30 January 2011
Agreed with Mr Kkrishnan. Dep reserve or Accumulated Dep is a liability and at the time of creation of financial statements will be reduced from the fixed assets for presentation.
You will any way show a separate schedule showing the changes during the year.
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