Depriciation transaction

This query is : Resolved

F H G (Querist)
Follow

23 November 2009 What is the use of
Accumulated Depriciation?
Give an example transaction for
accumulated depriciation.

Can we post depriciation monthly twice?

Thanks in advance
fazle_sap_fi@yahoo.in

shakuntala chhangani

shakuntala chhangani (Expert)
Follow

23 November 2009 when rather than deducting the amount of dep. from asset a/c, it is accumulated in a separate A/c called provision for dep A/c. In this case asset account will appear at cost and the dep. gets accumulated in PFD A/c. at any point of time if you want to know WDV of the asset, it is the difference between ORIGINAL COST AND THE AMOUNT ACCUMULATED IN pfd a/C.
it is the way of presentation. ewhatever is the use/purpose of providing dep, the same is the objective of PFD A/c with the only difference that rather than cr. Asset A/c you Cr. PFD A/c.
yes, you can pass the entries for dep at once or twicw a month depending upon your MIS. normally entries for dep are passed at the year end by passing JV. Regards,
CA Shakuntala Chhangani

GSTP Hari Dhayalan Konar

GSTP Hari Dhayalan Konar (Expert)
Follow

23 November 2009 nice explanation. thanks

F H G

F H G (Querist)
Follow

23 November 2009 Thank you sir

Madhusudan Bohra

Madhusudan Bohra (Expert)
Follow

23 November 2009 FAZEL,

Though there are two diff. ways of presentations :
1. reducing depreciation from asset value and showing net asset value in Fixed Assets. Or

2. Showing separately gross value of assets in Fixed assets and Accumulated depreciation in liability account.

As per IAS 16, fincial statement need to reflect Cost of asset and accumulated depreciation separately and hence option 2 is strongly recommended.

Cost of Assets are required in many cases viz. during insurance claims, transfer of assets withing the group, etc. Option 2 give long term solutions to all these issues.

Depreciation is calculated on daily basis. It is only matter of processing the depreciaton and passing the entry which can be done any time as per requirement.

Hope it clarifies the question.

PL. comment.

F H G

F H G (Querist)
Follow

24 November 2009 Yes Sir I got it
Thanks very much

shakuntala chhangani

shakuntala chhangani (Expert)
Follow

24 November 2009 Hey Fazel, I am mam n not sir. Mr. Bohra has given nice answer as per IAS. the same is there in Schedule VI (fixed assets Schedule)to the cos. Act also.

F H G

F H G (Querist)
Follow

30 November 2009 Thank you Shakuntala mem.
Can u give me ur email id.
I am an SAP FICO Consultant.

fazle_sap_fi@yahoo.in

Thks.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Sanoj T

madhu Reddy

Vasudevan Santhanam

velichety.l.narasimharao

shanmukha sai

Subscribe Now

Depriciation transaction

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA