Depreciation

AS 763 views 3 replies

In the2001-02  year some accountant has wrongly shown Security deposit in the leasehold premises in the year 2001-02 and has claim depreciation on straight line method and now we want to move security deposit from leasehold.what are the effects and the entries to be passed.please guide me.

Replies (3)

Regroup the Security Deposit under the head Non-Current Assets

After that pass the following entry:

Security Deposit  Dr 

To Depreciation(leasehold premised)  Cr

The entry will be:

Security deposit .... Dr.         (Amt of Security Deposit)

     To Leasehold Premises        (Proportionate Balance of Sec Deposit left after Depreciation)

     To Prior Period Adjustments (Remaining Amount (to be adjusted in P/L at year end as per AS-5))

 

Further u'll have to reclassify it as per Revised Sch VI under head Non Current Assets.

Thanks!!

both Mr.Giridhar and Mr.Ashish jain views are correct.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register