06 June 2022
what are difference between Depreciation Vs, Accumulated Depreciation. Tax treatment of Depreciation and Accumulated Depreciation in Books of accounts and whether Accumulated depreciation is annually charged to profit and loss account.
06 June 2022
Depreciation is a revenue (non cash) expenditure. While passing depreciation entry periodically, depreciation is debited and depreciation reserve (accumulated depreciation) is credited. Depreciation is transferred to Profit and Loss account at the end of the year. Accumulated depreciation is reduced from fixed assets while preparing the balance sheet.
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