What is Accumulated Depreciation ?

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Accounting Home Services

Accounting Home Services (Querist)
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20 November 2019 Hi,

What is Accumulated Depreciation ? When to calculate.

Gokul Sharma

Gokul Sharma (Expert)
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20 November 2019 it is the total depreciation calculated combining of each years.
original assets cost- accumulated depreciation = wdv of asset

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A.S.SUNDARARAJAN

A.S.SUNDARARAJAN (Expert)
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20 November 2019 The depreciation work sheet will have three major heads.
1. Original cost : The cost at which asset is purchased to be shown in this head. The assets to be classified as land , Buildings, plant and machinery, Furniture and Fitting , Electric instillation and Intangible assets
2. Accumulated depreciation : It means the depreciation charged from the date of purchase till date against each asset.
3. Written down value : This means the book value of the asset as on date . That is original cost less accumulated depreciation as on date

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Accounting Home Services

Accounting Home Services (Querist)
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20 November 2019 In small traders balance sheet there is no accumulated depreciation, most of the CA's / Professional pass entry Eg. Depri ac Dr to Asset ac Cr.
is it also ok.

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN (Expert)
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20 November 2019 Then for working out accumulated depreciation, the amount charged as depreciation is to be taken as accumulated depreciation

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Gokul Sharma

Gokul Sharma (Expert)
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23 November 2019 yes it also right ................this is just way of presentation

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